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Modified VWAP Methodologies

New Research: Essay Four (continued)

Essay on MIDAS/AC Quadrating Price Levels (continued)

© Andrew Coles

Conclusion and Summary

The most basic feature of the new indicator is its relative adjustment. As well as adjusting to daily, weekly, and higher timeframes like standard Pivot Points, Quadrating Price Levels also adjust according to:

  1. The direction of the intraday trend
  2. The intraday timeframe chosen
  3. The volume - both on “inner level” and “outer level” plotting

Because of the volume input and other formula features, Quadrate Price Levels are not coextensive with standard Pivot Points. Sometimes there is an overlap between the indicators but this is usually an overlap between unlike levels – for example, Q3 overlapping with R1 or S1.

Quadrate Price Levels are based on an extension of Paul Levine’s Inflection Point Philosophy. This time, however, it is extended to the idea of potential inflection points rather than hidden or out-of-reach inflection points in my Fourth Generation (Gen-4) curves. This means that the indicator can be used as a standalone indicator or in relation to other technical analysis indicators or other MIDAS indicators.

For example, Figure 10 below is Figure 9 with the addition of my Displacement Channel (green, fitted at arrows) and a standard MIDAS curve (blue) on the right.

Figure 10: Addition of the MIDAS/AC Displacement Channel (green) and standard MIDAS curve (blue)

Finally, this indicator can also be constructed from Gen-2 curves, making it accessible to the cash forex market, as well as Gen-4 curves, making it applicable to other financial datasets possessing fractal trend characteristics.

Again this is to remind visitors that the above work is the intellectual property of Andrew Coles and that no unaccredited use of any of this material is permitted. - © Andrew Coles






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