Midas Analysis

Trading and Technical Analysis with MIDAS

Price Action on Russell 2000 Futures

Above we have a 2 min chart of TF futures from today, showing a fairly large number of relevant MIDAS curves.   Walking through the price action….

 

R1:  We start with a swing high, where we launch R1.  It’s immediately tested, price falls down and retests twice about an hour later.

R2: Price comes back toward the R1 again around 8:15 but can’t make it up there, so we launch an R2.  Price falls away from it.  Back for a retest at 8:30 and down again.

S1: Price bottoms out and goes for a another test.  We launch S1 at the swing low.  By 9:00 it tests S1, bounces off of it and slices up through R2.  It continues to push up through R1, clearing the way for some upward action.

S2: Price does a brief retest, and we launch an S2.  After the retest, price shoots up again.

S3: Price consolidates and we launch an S3.  Price immediately pushes up again, and returns to S3 to test.

 

Later in the day, we launch an R3, which is used as resistance, followed by an S4.  After S4, price slices through R3 and uses it for support in the next hour and a half.  As price climbs, we add an R4, which serves as resistance for the next 20 minutes.  Price meanders between S3 and R4, finally slicing through R3 and S4 in one bar, and bouncing between S3 and S4 until the close.

 

This example shows a particularly large number of MIDAS S/R curves, but this illustrates how frequently these are used for support and resistance throughout the day.  It also shows how often a bounce/slice through the curve leads to subsequent price movement.  Every one of these curves catches subsequent price action with a high degree of precision.

 

 

 

 

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