Midas Analysis

Trading and Technical Analysis with MIDAS

MIDAS with FOREX – EUR / USD

 

MIDAS can be used in nearly any market.  In the example above, we have today’s euro/dollar market on FOREX, plotted as 987 tick bars.  It shows a single MIDAS support curve along with the TopFinder curve.

 

As price moves away from the low of the day, a MIDAS support curve can be launched.  About 30 mins later we see the first pullback.  Since the price does not come all the way back to the S curve, we can tell it’s an accelerated trend.  In this case we’d add a TopFinder curve from the same launch point, and adjust its volume fuel so the TopFinder intercepts the pullback.

 

TopFinder is successful here at indicating the near top of the market.  When TopFinder reaches the end, it’s a good time to sell or to use the curve as a stop.

 

Also, notice the original S curve is finally tested about 3 hours after it was launched.  The retest is successful, but price moves into a sideways market.

 

Hierarchies of Support and Resistance (expanded to ticks)

 

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.