Midas Analysis

Trading and Technical Analysis with MIDAS

Support Curves with TopFinder on S&P (SPY ETF)

 

The chart above shows a 3 minute bar chart of the SPY ETF.  It includes a set of 3 MIDAS support curves, followed by a TopFinder curve.

 

The first S1 curve was launched at the low of the day.  30 mins later it caught the first pullback accurately.  From the pullback, we launch a new S2 curve.  Price moves up and then returns to retest.   From the next pullback, we launch an S3 curve.  Additionally, we launch a TopFinder curve, and adjust it to fit the next few bars.  Afterward, the closest we come to a pullback is at 7:45.  Fit to this low, TopFinder tracks the trend to the correct bar.

 

Several rectangles have been drawn to illustrate interactions between price and S curves later in the day.  The first box shows two bounces off of S3, which is finally broken around 9:30.  Price moves down to test S2, but bounces back up and goes through S3.