The MIDAS Standard Deviation Bands in Uptrends and Downtrends
There's absolutely no reason for the application of the MSDBs being restricted to sideways markets. Figure 15.2 is a 5m chart of the DJ Eurostoxx 50 September 2010 futures again showing three trading days. The market until the vertical line is in an uptrend with the emphasized middle curve again a standard MIDAS support curve between the outer bands. In the uptrend two of the bands resist price while in the downtrend the first lower band, which by now has expanded considerably, supports the downtrend on two key occasions, although in the first instance there is price suspension.
So far, we've taken a pretty broad perspective when using this indicator inasmuch as the market action analyzed ...
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