Levine's Two Insights Governing the MIDAS Methodology
Paul Levine believed that the MIDAS approach is governed by two major insights. The first is that the structure of the markets is a hierarchy of support and resistance levels, with each subject to a MIDAS curve launched from a trend reversal point marking a change in market psychology. This idea was discussed in Chapter 1 and it has since been illustrated in the previous two chapters.
The second insight is that there often exists in the markets an underlying structure that dominates, or in Levine's term, “guides” the bull or bear move as it develops from its starting point. This structure is characteristic of a certain type of trend known as an “accelerated trend.”
The characteristics of an ...