Bearish Price & FLD – 24 September 2013 2

You probably know that I find the interaction between price and the FLD (Future Line of Demarcation) to be the most powerful trading approach to the markets. We launched our online FLD Trading Strategy course in late October of last year, and you can see the very rewarding results of the trades produced by the strategy here (including equity graphs, a portfolio report, a video explaining it all and even a full list of all the trades).

It would be remiss of me not to point out that the US markets are at a bearish juncture at the moment. Here is a chart with the recent sequence of price & FLD interactions marked on it:

Recent price & FLD interaction

If you don’t understand all those letters then take a look at the introductory material we have about the FLD Trading Strategy which is adequate to get you up to speed. The important point is that the market is poised right now to cross below the 20-day FLD in a D-category interaction. Here is a detailed chart:

Detail of the forthcoming interaction

The level of the FLD for today, 24 September 2013 is 1696. If price crosses below the FLD (the median price for the day must be below the FLD) then we will expect a downwards move to about 1666. Various factors will affect that target, including underlying trend of course (the sum effect of all cycles longer than the 20-day cycle, which the FLD is based upon) which is slightly bearish at the moment.

Mostly D-category interactions provide for good profitable trading opportunities, although one has to be careful to get out quickly as the market bounces up to form the second peak of the M-shape of the 80-day cycle. Sometimes D-category interactions are disappointing, such as the interaction at the end of July this year (see the first chart above), but any losses can be minimized by the proper handling of the trade (and monitoring of the situation). The good news is that it is very rare for there to be two disappointing D-category interactions in a row, and so the chances of this one being a rewarding interaction are good.

About David Hickson

I have been trading for over 20 years, but only had any success after discovering Hurst's cyclic principles. Unable to find any software to speed up the analysis process I created Sentient Trader software, which now pretty much does all the analysis for me. I am a film maker and a TV director, but nowadays I mostly provide consultation services to professional traders and fund managers, helping them to integrate Hurst analysis into their trading. I'm South African and live with my family in Italy.

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2 thoughts on “Bearish Price & FLD – 24 September 2013

  • Derek

    David, thanks for the analysis.
    What is you format for updates and are you going to be doing a members only room? I am a very critical point with Hurst and would appreciate your continued guidance. I liked the videos you did for the last two years and would like to see them continue, as well as any members only options. Thanks