Applying MIDAS To Daily And Weekly Charts by A. Coles and D. Hawkins
In this second part of this series we go one step further by adding deeper insight into price action.
SO far, we have explored what technical analyst Paul Levine called the scientific aspect of the market interpretation/data analysis system (Midas) — that is, the quantitative laws that give rise to Midas and the curves of Levine’s indicator, the topfinder/bottomfinder (TB-F). In this article, we will examine what Levine called the engineering aspect of Midas — the practical trading rules on which the system is based.
This first section on the application of TB-F to daily and weekly charts is largely the contribution of David Hawkins. Hawkins will expound on the rules governing the application of TB-F as recommended by Levine using StockShare (v2). As a result of Hawkins’s input, this program now has Midas and TB-F plugins for its end-of-day platform.
Like the original WinMidas, Midas curves and the D component of the TB-F algorithm are calculated automatically in StockShare by the user selecting the curves and dragging them with a mouse.
It should be emphasized too that David Hawkins is more conservative than Andrew Coles in demanding the completion of half of an accelerated move before attempting to fit a TB-F curve. This is reflected in the TB-F plugin in StockShare (v2). No such limitation exists in the eSignal version.