Analysis and Trading based on Envelopes, Waves, Cycles

Hi Parisboy,

Why you do not explain about Future line of demarcation projections ?

This technic already explained in the past , seems to give good levels .

Ok Sohocool I will ..... again

DAX The Future Liine of Demarcation 32 (FLD 32) - Price Action offsetted 16 points forward in the future - acting as Support or Resistance

DOW Closed Long position + 33 points

Entry on break of FLD 256 - Price Action translated 128 points in the future

Stop Loss at the level of the Break

The behaviour of FLD's in the real world is interesting to observe

Understanding how a FLD works is simple ...... for ONE CYCLE

Above chart shows (in black) the combined FLD of the sum (in blue) of the 3 cycles red, lila and yellow

Notice 2 important points.

- amplitudes of the 3 Cycles which show different periods are identical
- Underlying Trend is Flat, Neutral

The above chart is a theoretical chart whose aim is to help you understand the structural limits of the FLD.

In the real life, in the real trading the situation is even more complex with :

- an Underlying Trend which is UP or Down
- amplitudes which are different for each cycle
- more than 3 cycles

Good luck !

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

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

A FLD Pause Zone generated by multiple FLD 32, 64, 128, 256 etc

Jim Hurst FLD Chart from his Cyclitec Course (1975)

An idealized Price Wave and its FLD

Cycle moves Down when FLD moves Up (and conversely)

FLD's confirm Peaks and Troughs

When the Underlying Trend is Flat / Neutral Cycle Peaks are synchronized with FLD trough (and conversely)

Jim Hurst Chapter 9 of the Cyclitec Course (1975) : Understanding the FLD

EURUSD 30 mn

Operative Dominant Cycle within Price Action

Jim Hurst Chapter 9 of the Cyclitec Course (1975) : Cassette Script : Understanding the FLD

A video of David Hickson, creator of Sentient Trader on his FLD Strategy

https://hurstcycles.mykajabi.com/trade-entries