Let’s expand the previous session, detailing the later part of the day, since there’s a lot more we can show.
We usually see MIDAS applied to time-based bar charts, such as minute, hour, month, etc. MIDAS can be used just as well on tick charts, such as the 266 tick chart shown above.
We’ve shown how MIDAS illustrates support and resistance lines. Launched from various pullbacks, we can produce MIDAS curves that capture every future pullback with excellent accuracy. Three of the curves shown are natural locations we’d launch them from. One (turquoise) is slightly unusual because it’s a minor pullback, but it has value since it demonstrate the subsequent sideways movement, catches the next 2-3 minor pullbacks accurately, and about an hour later it captures a major pullback perfectly.