The MIDAS Standard Deviation Bands in Sideways Markets

Let's make a start by taking a first look at the bands in a sideways market. Figure 15.1 is a 5m chart of the DAX September 2010 futures over three trading days. Until the vertical line, the market is drifting sideways while gradually expanding its range; after the line it expands its range to the downside. The heavy black line in the middle of the indicator is the original MIDAS support curve launched from a moderately sized low on August 22. Above and below it are three standard deviation bands. The circled areas highlight where the standard MIDAS support curve supports and then resists price. The arrows highlight areas where the bands above the central MIDAS curve resist price and where ...

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