Discovering the Topfinder/Bottomfinder
What follows is a plausible scenario for the process that Levine2 went through to discover the topfinder. This may not be the actual path he took, but it could have been, given the things he wrote about it. In going through this, you can gain an appreciation for what the topfinder is, how it works, and how it is related to the standard MIDAS S/R curves.
Figure 5.1 is a monthly bars chart of Johnson & Johnson, JNJ, from 1993 to 2000. The first pullback, in 1996, is far above S1, so this certainly is an accelerated trend. There are three pullbacks in this trend, the second one being much more prominent and significant than the other two. (This example was chosen for its simplicity, having only one major pullback ...
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