How It Works…
Hurst Signals are based on the 20 Day Hurst Cycle and the FLD Trading Strategy.
The FLD (Future Line of Demarcation) is JM Hurst’s most powerful trading tool. For the 20 Day Cycle, the FLD is the market price shifted forward 10 Days (half a cycle). When price crosses an FLD, it is a signal to trade. This is the basis of Hurst’s original trading strategy.
The FLD Trading Strategy is a development of Hurst’s Methodology and is available to Sentient Trader software users as the FLD Trading Strategy training course. Over many years of observation, David Hickson has found that price does not always perfectly cross an FLD. Sometimes it just touches it and other times only reaches towards it, i.e. price interacts with the FLD.
In every 20 Day Cycle there are two trading opportunities, one long and one short trade, when price interacts with the FLD.
In every 80 Day Cycle there are four 20 Day Cycles and therefore eight price / FLD interactions (four long and four short trades). In the FLD Trading Strategy, these eight trading signals are labelled A to H and follow the same sequence long, short, long, short, etc. time after time.
As well as predicting Trade Entries, the FLD Trading Strategy uses:-
- Underlying Cyclic Trend to determine position size and
- “Single-in, Scaling-out” Trade Exit process to balance risk and reward for each trading opportunity.
This chart from the Hurst Signals shows the sequence of trades for the EURUSD forex pair.