Lesson – Cycle Price Projection Method Using FLDs
Today, using Bitcoin as an example, I will explain the cycle-based price projection method. In cycle literature, the method is referred to as price projections using the forward line of demarcation (FLD).
Definitions:
- Cycle period = time distance between cycle troughs;
- Forward line of demarcation (FLD) = Price shifted by half the cycle period;
- Cyan line = median of the price bar;
- TD = trading day;
- CD = calendar day;
In this example, the FLD band is constructed by offsetting the median price by TD=7 and TD=8 TDs, which correspond to CD=9 and CD=10 CDs for the nominal 20D cycle that is presumed to vary between 19 and 20 CDs.
H1 is the vertical distance between the last low before the median price intersects with the left FLD band boundary and the intersection point.
H2 is the vertical distance between the last low before the median price intersects with the right FLD band boundary and the inter
