Small IWM analysis

[EB]

You're right in that the MIDAS line on the daily chart seems to fit a little too perfect and that it's easy in hindsight to put it there. But it is not a random day I started from, that is the day the market had a gap up and started a mayor uptrend.

Rembert, this is perfectly in line with Levine's premise of looking for a psychological inflection point, which might be at an actual low, or the first big gap up, which might also be an IBD follow through day.

David Hawkins will adjust with some hindsight the launch date after the first pullback to the MIDAS curve vicinity, under the assumption that the next pullback will more closely respect the MIDAS curve.

Regarding the multiple support and resistance curves, they can easily clutter a chart. Once a support is broken, for instance, I leave it to see if it turns into resistance. However, if it looks like price is not respecting it, I simply remove it at that point.

[Rembert]

Thanks Bob. I'll have to check out the MIDAS book sooner or later.