MIDAS Technical Analysis: A VWAP Approach to Trading and Investing in Today's Markets

Additional Forecasting Implications

Figure 14.3, a 5m chart of the Xetra DAX December 2009 futures, contains another two instances of the MDC channel marked by (1) and (2) on the chart. The first larger one is fitted at the black arrows at 0.43 percent and 0.07 percent, and the second smaller one is fitted at the black arrows at 0.08 percent and 0.13 percent (the standard MIDAS curve is blanked out in both instances because it is playing no effective role). However, Figure 14.3 shows in addition that the curves of the DMC can often go on to play significant roles in capturing subsequent swing highs and lows. With regard to the first MDC, the gray ovals highlight this on two occasions during November 20. Moreover, on November 23 the market gaps ...