Trading Implications of the MDC
Any indication that price is reversing against the upper or lower band will imply that it will move back at least as far as to the standard MIDAS curve or else to the opposite band. If price breaks out, this is usually a highly significant occurrence because it indicates a resumption of or change in the trend. As indicated in Figure 14.2, when price does break out the outer boundary will often reverse its support/resistance role. The reader will see these trading features of the MDC illustrates throughout the charts in this chapter.