Midas TopFinder

The Midas method of technical analysis was introduced by Dr. Paul Levine. You can

find more information on the Midas Midas Method by visiting

http://www.midastechnicalanalysis.

There is also a good article on the subject by Andrew Coles and David Hawkins in the

July 2009 issue of TASC.

 

Standard Midas lines are based on volume-weighted average price (VWAP) as measured

from a specific launch point (usually an important pivot)  This might be a swing low that represents the

beginning of an up-trend, or a swing high that represents the beginning of

a down trend. In general, Midas lines offer strong support & resistance which,

when broken, indicate trend exhaustion.

 

The Top/Bottom Finder is based on Levine’s belief that each trend has a fixed

amount of “fuel” (based on cumulative volume) and as the trend develops it will follow

the curve of the Top/Bottom Finder plot. When the “fuel” is consumed then

the trend is over and prices (in an uptrend) will likely move to the Midas curve.

 

The key to the operation of the Top/Bottom Finder is to determine the correct

amount of “fuel” (cumulative volume) to assign to the curve and, therefore,

to the trend you are measuring. This normally cumbersome and tedious process is

fully automated in the Top/Bottom Finder indicator.

 

Now if you are not happy with the optimized Top/Bottom Finder curve you can

fine-tune it to a high degree. This is done by double-clicking on the curve

line which will pull up a Curve Control button bar for that line. With the

button bar you can increase the cumulative volume being considered, decrease the

cumulative volume being considered, reset the curve back to its optimized cumulative

volume value, and delete the curve entirely.

 

Once a Top/Bottom Finder curve has been created, as new bars come in the Top/Bottom

Finder will continue to plot and update until the allocated cumulative volume is

exhausted…which indicates the end of the trend based on this particular Top/Bottom

Finder curve.