MIDAS Technical Analysis: A VWAP Approach to Trading and Investing in Today's Markets: 46 (Bloomberg Financial) - Hardcover

Coles, Andrew

Hardcover

ISBN 10: 1576603725 ISBN 13: 9781576603727

Publisher: Bloomberg Press, 2012

Synopsis

This book provides a new, powerful twist to MIDAS technical analysis, a trading method developed by the late Paul Levine. The authors show how to employ MIDAS in trading, from recognizing set ups to identifying price targets. The book explains the basics of MIDAS before demonstrating how to apply it in different time frames. Further, it extrapolates how MIDAS can be used with other more conventional indicators, such as DeMark or moving averages. In addition to introducing new indicators that the authors have created, the book also supplies new computer codes.

About this title

About the Author

ANDREW COLES, PhD, is an active trader running a private investment fund. He has a diploma in technical analysis from STA–UK and from the International Federation of Technical Analysts (IFTA). He is also a Certified Financial Technician (CFTe). He holds a master's and a doctorate and was a Postdoctoral Research Fellow of the British Academy. During his graduate and postdoctoral years, he worked at a number of institutions, including King's College (KQC) London, the Institute of Classical Studies, and Oxford University. He is the author of a previous book on the history and philosophy of science.

DAVID G. HAWKINS is a successful full-time trader. He holds an MS in physics from Brown University, has taught physics at Roger Williams University, and has designed optical and ultrasound components for graphics, medical, and telecom systems. He presents on MIDAS and other technical analysis topics at AAII conferences.

From the Back Cover

Market Interpretation/Data Analysis System, or MIDAS, was developed by physicist and technical analyst Paul Levine, in the mid 1990s. It was originally conceived of as a method of analyzing market trends inspired by aspects of the popular Volume Weighted Average Price (VWAP) pricing method. Essentially, what Levine discovered was that he could accurately predict reversals in trader sentiment and, therefore, market trends using algorithms derived, in part, from VWAP pricing methods. Extending Levine's insights from the daily charts on which the method was conceived, Coles and Hawkins have since expanded the fractal capabilities of the approach to apply to all time frames from one-minute charts and swing-trading charts to charts of interest to the very long-term investor.

Because Levine's focus was on MIDAS purely as a forecasting tool, he failed to develop a framework for trading and investing management. Coles and Hawkins address this issue throughout the book by emphasizing how the MIDAS approach can be combined with Japanese candlesticks and other volume-based chart styles for effective trade and investment management.

Writing for traders and investors, as well as technical analysts, Coles and Hawkins explain, in plain English, the basic principles of MIDAS as originally laid down by Paul Levine. However, for the majority of the book they move into new MIDAS territory, illustrating how new manipulations of the MIDAS algorithms result in new types of indicators and curves applied to entirely new market environments and time series, and how the untold story of volume powerfully affects the plotting of MIDAS curves. The authors also demonstrate how MIDAS curves can work alongside sophisticated techniques such as float analysis and market profile, how MIDAS curves can be improved by atypical calibrated launch points, and how additional techniques such as new MIDAS-based oscillators and trading bands can improve market timing.

In the nine chapters comprising the final part of MIDAS Technical Analysis, Coles and Hawkins detail how advances in trading hardware and software have made it possible to extend MIDAS to areas Levine never dreamed of. They show how MIDAS especially when used in conjunction with robust charting methods, such as Japanese candlesticks can function as a complete trading system, or be used as a supplementary tool for greatly enhancing trading effectiveness. They also explain how to develop a MIDAS trading system using existing off-the-shelf technologies.

Requiring no prior experience with the MIDAS approach, MIDAS Technical Analysis gets readers quickly up and running with the knowledge and skills needed to take full advantage of the incredible power of this sophisticated approach to timing and trading the markets.

From the Inside Flap

Market Interpretation/Data Analysis System, or MIDAS, was developed by physicist and technical analyst Paul Levine, in the mid 1990s. It was originally conceived of as a method of analyzing market trends inspired by aspects of the popular Volume Weighted Average Price (VWAP) pricing method. Essentially, what Levine discovered was that he could accurately predict reversals in trader sentiment and, therefore, market trends using algorithms derived, in part, from VWAP pricing methods. Extending Levine's insights from the daily charts on which the method was conceived, Coles and Hawkins have since expanded the fractal capabilities of the approach to apply to all time frames from one-minute charts and swing-trading charts to charts of interest to the very long-term investor.

Because Levine's focus was on MIDAS purely as a forecasting tool, he failed to develop a framework for trading and investing management. Coles and Hawkins address this issue throughout the book by emphasizing how the MIDAS approach can be combined with Japanese candlesticks and other volume-based chart styles for effective trade and investment management.

Writing for traders and investors, as well as technical analysts, Coles and Hawkins explain, in plain English, the basic principles of MIDAS as originally laid down by Paul Levine. However, for the majority of the book they move into new MIDAS territory, illustrating how new manipulations of the MIDAS algorithms result in new types of indicators and curves applied to entirely new market environments and time series, and how the untold story of volume powerfully affects the plotting of MIDAS curves. The authors also demonstrate how MIDAS curves can work alongside sophisticated techniques such as float analysis and market profile, how MIDAS curves can be improved by atypical calibrated launch points, and how additional techniques such as new MIDAS-based oscillators and trading bands can improve market timing.

In the nine chapters comprising the final part of MIDAS Technical Analysis, Coles and Hawkins detail how advances in trading hardware and software have made it possible to extend MIDAS to areas Levine never dreamed of. They show how MIDAS especially when used in conjunction with robust charting methods, such as Japanese candlesticks can function as a complete trading system, or be used as a supplementary tool for greatly enhancing trading effectiveness. They also explain how to develop a MIDAS trading system using existing off-the-shelf technologies.

Requiring no prior experience with the MIDAS approach, MIDAS Technical Analysis gets readers quickly up and running with the knowledge and skills needed to take full advantage of the incredible power of this sophisticated approach to timing and trading the markets.

Edition details

• Publisher: Bloomberg Press
• Publication date: 2012
• Language: English
• ISBN 10: 1576603725
• ISBN 13: 9781576603727
• Binding: Hardcover
• Edition number: 1
• Number of pages: 464