Volume Analysis Techniques:
A Three-Part Series

Three Techniques

PART 1

• The Modified Price-Volume Trend (MPVT) Index, and its careful overlay plotting on price data [Go to Part 1]

  Part 1 described the Price-Volume Trend (PVT) Index. This us a very sensitive indicator of accumulation/distribution when the right kind of overlay plotting is done. It has often given signals of upcoming price moves when no other indicator has even a clue as to what's going on.

PART 2

• Paul Levine's MIDAS Support/Resistance Curves [Go to Part 2]

  Part 2 covers Paul Levine's MIDAS Support/Resistance Curves. Unlike simple horizontal lines or straight trendlines, these S/R curves are launched from major price turning points, and are calculated with a sophisticated combination of price and volume data. They very often provide uncannily accurate locations where the price turns right around and reverses its trend.

PART 3

• Paul Levine's MIDAS TopFinder/BottomFinder Algorithm [Go to Part 3]

  Part 3 covers Paul Levine's TopFinder/BottomFinder Algorithm. This is a tool for predicting when a very rapid price upswing (or downswing) will end. It's a curve-fitting scheme, where the user iteratively chooses (guesses) how much more volume is left to trade before the price swing ends. The algorithm then generates a curve, and if it fits the price's move to date, then that chosen volume is the right one. There are certain conditions that the price swing must meet for this tool to be applicable, but when it does, its results are amazingly accurate.

 

Part 1 was presented on July 19 and Parts 2 and 3 were presented on September 27, 1999.