Applying the Rules to Applications of Standard and Nominal MIDAS S/R Curves
Now that these four rules have been illustrated, let's utilize them to obtain a better understanding of the circumstances under which it's more appropriate to use nominal curves in place of standard curves. While all chart timeframes are relevant to this analysis, some of the more spectacular examples of the displacement phenomenon due to volume trends occur on the longer-term charts, especially when the trends have been in existence for many months or years. Thus, it's vital to consider using nominal curves over the primary and secular term trends.
FIGURE 11.7 5m chart of EUREX Bund December 2009 futures.
Figure 11.8 is a daily semi-log chart of the NYMEX Platinum continuous ...
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