Band Adjustment for Shorter Timeframe Analysis
As Figure 15.3 highlights, the MSDBs can be applied to lower timeframes as well as higher ones. In the examples so far, the bands' multiplier has multiplied them to wider levels of volatility. Narrower multipliers would be required when working with the bands on smaller segments of trends. Figure 15.4 is another 1m chart of the DAX September 2010 futures showing a much smaller segment of a downtrend with the band multipliers reduced.