Alternatives to Standard Deviation

There are alternatives to calculating the MSDBs aside from using standard deviation. Figure 15.8 is a 5m chart of the DAX September 2010 futures with a three-day downtrend. Here standard deviation is replaced by variance in the basic calculation and the thick black curve is again a standard MIDAS resistance curve.

FIGURE 15.7 The same 3m chart of the DJ Eurostoxx 50 September 2010 futures illustrating the MIDAS standard deviation band (MSD).

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FIGURE 15.8 5m chart of DAX September 2010 futures with variance.

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Figure ...

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