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MIDAS Technical Analysis: A VWAP Approach to Trading and Investing in Today's Markets by David G. Hawkins, Andrew Coles

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MIDAS Curves and Volume-Based Oscillators

Levine's formula for DIST is (P-S1)/(PMax-PMin), where P is the closing price, S1 is a MIDAS curve, and PMax and PMin are the highest and lowest prices of the period. DIST was intended as a normalized overbought/oversold oscillator measuring how close the latest price is to S1 (or R1), which usually for Levine is the most significant curve on the chart. Levine was vague about the oscillator's function, but presumably an oversold reading would coincide with the end of a price pullback to S1, while an overbought condition would signify the risk of the start of a pullback to the curve (readings would be reversed for R1).

Unfortunately, when the raw formula is programmed into Metastock the result isn't normalized ...

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