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#1

Hi David, this morning Iwas looking at the dax 15m and at around 8.30 price crossed down 1day fld giving a target short. I agreed with that pictures. Later price moved up and crossed up the same fld giving a target long that invalidate the previous analisys. How should I understand that?

thanks
Sergio


made this topic public #2

#3

Hi Sergio. The simple answer is that whenever price crosses the FLD it generates a target. So when it crossed below the FLD there was a target to the downside, and then when it crossed above the FLD a new target to the upside. It is a bit more complex because the indicator will work out multiple crosses of the FLD and combine them.

But in this example that looks more like an imperfect return to the FLD for a tap, and price found support there. If you look at the FLD on a different timeframe (M30 for instance) you will probably see that the FLD provided support.

The markets aren’t perfect and you will sometimes see these messy imperfect interactions between price and the FLD.


#4

Thank David, anyway the following cross of the 1day fld was the right one