Distinguishing an Uptrend from a Trading Range
As previously mentioned, in the Triple Screen method of dealing with the fractal nature of the market, the long-term chart is where you look to discern what the trend of the market is. Now let's see how MIDAS curves can distinguish a trading range from an uptrend. Later in this chapter, I show how MIDAS curves are used to track a trend to its end.
Let's very carefully examine the daily bars chart of Corning, GLW, Figure 2.6. There are five MIDAS S curves here, launched from each of the major lows. At the beginning of each curve, as price lifts up, it looks at first as though an uptrend may be starting. But each of those first four starts fails, and price comes far back down again. However, long before ...
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