Analysis and Trading based on Envelopes, Waves, Cycles

Note that on this theoretical chart only the A,D,E, F FLD / Price crossings allow to calculate a profitable Target Price (TP)

Crossings B,C,G,H are structurally unable to allow the same

FLD textbook behaviour in real trading

I have no idea if I am doing this correct as on MT4 so all I have done is change the numbers to the ones you shown on the standard Bill Williams Alligator Indicator

OAPDave

basic construction of the Future Line of Demarcation is to project in the future the Price Action of 1/2 period of the observed Cycle

so the question is "which cycle ?"

For obvious reasons linked to the Envelopes methodology and for coherence I use the same Time Units as for the Envelope 32, 128, 256 which means you project Price Action in the Future of 16, 64 and 128 bars forward

Other FLD can be built but it is a good starting point.

Then as FLD charts are cluttered with "noise" practically I project in the future a Simple Moving Average of Price - SMA 3 for the FLD 32 annd SMA 5 for FLD 128 and 256

This way I found the chart clearer and more readable

Thanks, I have tried again with Standard Alligator Setting

DAX Closed Short position +52 points

DAX Closed Short position + 20 points

DAX Closed Long position + 19 points

DAX Closed Long position + 15 points

DOW Closed Long position + 27 points

DOW Closed Short position + 89 points

Entry following the break of the Centered Moving Average 256 TU (brown)

Stop Loss at the Level of the Centered Moving Average 128 TU (ocre)

DAX Closed Short position + 17 points

DAX Closed Short position + 105 points (2 Lots)

DOW Closed Short position + 61 points