Sentient FLD

3 วันที่ผ่านมา

Overview of the FLD
The Future Line of Demarcation (FLD) was first proposed by JM Hurst in the 1970s as a cycle analysis tool. It is a smoothed median price plotted on a time-based chart, and displaced into the future (to the right on the chart). The amount of displacement is determined by performing a cycle analysis, the line then plotted to extend beyond the right hand edge of the chart by half a cycle wavelength.

Interactions between price and the FLD
As price action unfolds, price interacts with the FLD line, either by crossing over the line, or by finding support or resistance at the line.

Targets
When price crosses an FLD a target for the price move is generated. The target consists of a price level and also expected time.

• When price reaches that target it is an indication that the cycle influencing price to move up or down has completed that action and is about to turn around.
  
• If price fails to reach a target by the expected time, it indicates bullish or bearish pressure from longer cycles, and a change in mood of the market.
  

Sequence of interactions
Price interacts with the FLD in a regular sequence of 8 interactions which are labelled using the letters A - H, in alphabetical order. This sequence of interactions occurs between price and a cycle called the Signal cycle. The full sequence plays out over a single wave of a longer cycle, called the Sequence cycle. The interactions are:

• A category interaction is where price crosses above the FLD as it rises out of a trough of the Sequence cycle.
  
• B & C category interactions often occur together as a pair, where price comes back to the FLD line and finds support at the level of the FLD as the first trough of the Signal cycle forms.
  
• D category interaction is where price crosses below the FLD as it falls towards the second trough of the Signal cycle.
  
• E category interaction is where price crosses above the FLD again as it rises out of the second trough of the Signal cycle.
  
• F category interaction is where price crosses below the FLD as it falls towards the next trough of the Sequence cycle.
  
• G & H category interactions often occur together as a pair, where price comes back to the FLD line and finds resistance at the level of the FLD before a final move down into the next Sequence cycle trough.
  

Trading Opportunities
This sequence of interactions provides the trader with trading opportunities:

• A and E category interactions involve price crossing over the FLD line, for a long trading opportunity.
  
• D and F category interactions involve price crossing below the FLD line, for a short trading opportunity.
  
• B and C category interactions occur where price finds support at the FLD, another long trading opportunity.
  
• G and H category interactions occur where price finds resistance at the FLD, another short trading opportunity.
  

3 FLD Lines Plotted
The Sentient FLD indicator plots three FLD lines, for three primary cycles on your time-based charts:

• The Signal cycle (pink color, can be changed in the settings), which is used to generate trading signals on the basis of the sequence of interactions between price and the FLD
  
• The Mid cycle (orange color, can be changed in the settings), which is used for confirmation of the signals from the signal cycle FLD.
  
• The Sequence cycle (green color, can be changed in the settings) which is the cycle over which the entire A - H sequence of interactions plays out.
  

Cycle Analysis
In addition to plotting the three FLD lines, the Sentient FLD indicator performs a cycle phasing analysis and identifies the positions of the troughs of five cycles on your chart (The Signal, Mid & Sequence cycles and two longer cycles for determining the underlying trend).

The results of this analysis are plotted by using diamond symbols to mark the timing of past troughs of the cycles, and circles to mark the timing of the next expected troughs, with lines extending to each side to represent the range of time in which the trough is expected to form. These are called circles-and-whiskers. The diamonds are stacked vertically because the troughs are synchronized in time. The circles-and-whiskers therefore are also stacked, creating a nest-of-lows which is a high probability period for a trough to form.

Identifying the Interactions
The Sentient FLD also identifies the interactions between price and each one of the three FLDs plotted on your chart, and those interactions are labelled so that you can keep track of the unfolding A - H sequence.

Next Expected Interaction
Because the Sentient FLD is able to identify the sequence of interactions, it is also able to identify the next expected interaction between price and the FLD. This enables you to anticipate levels of support or resistance, or acceleration levels where price is expected to cross through the FLD.

Cycle Table
A cycle table is displayed on the chart (position can be changed in settings). The cycle table comprises 6 columns:

• The Cycle Name (CYCLE): the name of the cycle which is its nominal wavelength in words.
  
• The Nominal Wavelength (NM): The nominal wavelength of the cycle measured in bars.
  
• The Current Wavelength (CR): The current recent wavelength of the cycle measured in bars.
  
• The Variation (VAR): The variation between the nominal wavelength and current wavelength as a percentage (%).
  
• The relevant Sequence Cycle (SEQ): The cycle over which the sequence of interactions with this FLD plays out.
  
• The Mode (MODE): Whether the cycle is currently Bearish, Neutral or Bullish.
  

Benefits of using the Sentient FLD

• The cycle analysis shown with diamonds and circles marking the troughs, and next expected troughs of the cycles enable you to anticipate the timing of market turns (troughs and peaks in the price), because of the fact that cycles, by definition, repeat with some regularity.
  
• The results of the cycle analysis are also displayed on your chart in a table, and enable you to understand at a glance what the current mode of each cycle is, whether bullish, bearish or neutral.
  
• The identification of the sequence of interactions between price and the FLD enables you to anticipate the next interaction, and thereby expect either a price cross of the FLD or dynamic levels of support and resistance at the levels of the FLD lines, only visible to the FLD trader.
  
• When the next expected interaction between price and the FLD is an acceleration point (price is expected to cross over the FLD), that level can be used as a signal for entry into a trade.
  
• Similarly when the next expected interaction between price and the FLD is either support or resistance, that level can be used as a signal for entry into a trade when price reacts as expected, finding support or resistance.
  
• The targets that are generated as a result of price crossing the FLD represent cycle exhaustion levels and times, and can be used as take profit exits, or as levels after which stops should be tightened.
  
• The indicator optionally also calculates targets for longer timeframes, and displays them on your chart providing useful context for the influence of longer cycles without needing to change timeframe.
  

Example
In this image you can see an example of the different aspects of the indicator working on a 5 minute chart (details below):

This is what the indicator shows:

• The 3 FLD lines are for the 100 minute (pink), 3 hour (orange) and 6 hour (green) cycles (refer to the cycle table for the cycle names).
  
• Previous targets can be seen, shown as pointed labels, with the same colors.
  
• The cycle table at the bottom left of the chart is colour coded, and indicates that the cycles are all currently running a bit long, by about 14%.
  
• Note also the grey-colored 6 hour target generated by the 15 x minute timeframe at 12:20. When targets are close together their accuracy is enhanced.
  
• At the foot of the chart we can see a collection of circles-and-whiskers in a nest-of-lows, indicating that a 12 hour cycle trough has been due to form in the past hour.
  
• The past interactions between price and the signal cycle are labelled and we can see the sequence of E (with some +E post-interaction taps), F and then G-H.
  
• The next interaction between price and the signal is the A category interaction - a long trading opportunity as price bounces out of the 12 hour cycle trough.
  
• Notice the green upward pointing triangles on the FLD lines, indicating that they are expected to provide acceleration points, where price will cross over the FLD and move towards a target above the FLD.
  
• The cycle table shows that the cycles of 6 hours and longer are all expected to be bullish (with the 12 hour cycle neutral to bullish).
  
• On the basis that we are expecting a 12 hour trough to form, and the 6 hour cycle targets have been reached, and the next interaction with the signal cycle is an A category acceleration point, we can plan to enter into a long trade.
  

Two hours later
This screenshot shows the situation almost 2 hours later:

Notes:

• The expected 12 hour cycle trough has been confirmed in the cycle analysis, and now displayed as a stack of diamonds at 12:25
  
• Price did cross over the signal cycle FLD (the 100 minute cycle, pink FLD line) as expected. That price cross is labelled as an A category interaction at 13:00.
  
• A 100 minute target was generated. That target was almost, but not quite reached in terms of price, indicating that the move out of the 12 hour cycle trough is not quite as bullish as would be expected (remember the 12 hour cycle is expected to be neutral-bullish). The time element of the target proved accurate however with a peak forming at the expected time. Stops could have been tightened at that time.
  
• Notice that price then came back to the signal FLD (100 minute) line at the time that the next 100 minute cycle trough was expected (see the pink circle-and-whiskers between 13:40 and 14:25, with the circle at 14:05.
  
• Price found support (as was expected) when it touched the signal FLD at 13:55 and 14:00, and that interaction has been labelled as a B-C category interaction pair.
  
• We also have a 3 hour target above us at about 6,005. That could be a good target for the move.
  

Another 2 hours later
This screenshot shows the situation another 2 hours later:

Notes:

• We can see that the 100 minute cycle trough has been confirmed at 13:45
  
• The nest-of-lows marking the time the 3 hour cycle trough was expected is between 15:00 and 15:45, with a probable trough in price at 15:00
  
• The sequence of interactions is labelled: A at 13:00; B-C at 14:00; another B-C (double B-C interactions are common) at 14:30; E at 15:10; +E (a post E tap) at 16:20
  
• Price has just reached a cluster of targets at 6005 - 6006. The 3 hour target we noted before, as well as a 6 hour target and a 12 hour target from the 15 x minute timeframe.
  
• Notice how after those targets were achieved, price has exhausted its upward move, and has turned down.
  
• The next expected interaction with the signal cycle FLD is an F category interaction. The downward pointing red triangles on the line indicate that the interaction is expected to be a price cross down, as price moves down into the next 6 hour cycle trough.
  

Other Details
The Sentient FLD indicator works on all time-based charts from 10 seconds up to monthly.

The indicator works on all actively traded instruments, including forex, stocks, indices, commodities, metals and crypto.