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FLD's - Future Lines of Demarcation

An FLD is a line that is plotted on the same scale as the price and is in fact the price itself displaced to the right (into the future) by (approximately) half the wavelength of the cycle for which the FLD is plotted. There are three FLD's that can be plotted for each cycle:

Why do we say that the FLD is displaced by approximately half the wavelength? That is because the FLD is displaced by a slightly different amount depending upon its use.

How the FLD is used

When an FLD is based on the median price, it is used to confirm the troughs and peaks of cycles (that is why the FLD is described as a tool). For this purpose the FLD is displaced by half the wavelength of the price (rounded down, or truncated to a whole number) plus one bar, which postpones the confirmation provided by this tool by an amount between a half and one full bar.

When an FLD is based on the low or high price, it is used to as an immediate action signal for trading. For this purpose the FLD is displaced by half the wavelength of the price (rounded down, or truncated to a whole number), which does not postpone the signal at all, and provides a slightly quicker response from the FLD.

The FLD in fact provides three pieces of information:

Multiple FLD Patterns

A very important use of FLD's is in the observance of the patterns that multiple FLD's (the FLD's of many different cycles) form.

Expand your knowledge

To truly understand Hurst's Cyclic Theory there is no question that you should study the original material. While the book The Profit Magic Of Stock Transaction Timing is a good starting point, you will want to work through the JM Hurst's Cycles Course for a full understanding.

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