Short Term Trading Member Forum

[mr_cash4]

blackbelt, re. FLDs, each FLD "isolates" the market action for that particular cycle, and therefore when it's offset half the length forward, when crossed it provides a 100% projection in that direction. The advantage is that it is a leading indicator, hence giving you a preliminary projection for a top or bottom of that cycle. The drawback is that is is not so accurate because it projects the previous cycles action as the current action.

Therefore, you need to add the (half-span) Lagging Offset Moving average as well, becuase this is your "confirmation" of the FLD because the LMA uses the CURRENT cycles prices to derive the target hence it is far more accurate. The drawback is that it is a lagging indicator, and usually the tops and bottoms are made just as we are about to cross the LMA.

so, by combining the FLD (or FMA) with LMA you get first a preliminary target by looking at the FLD cross, and then the confirmed target by looking at the LMA.

hope this helps.

ps - and, imho, FLD has nothing to do with "momentum"