ST vs. MT4 FLD 1 day FLD calculation problem?

Here a comparison between ST and MT4 Hurst Indicators. Why this difference ?

i also faced the same problem in FLD position for the same cycle, the technique used in ST is different than the one used in MT4 hurst tool, this is the main reason if the cycle troughs are identical and both do the same job from different view, i also doubt the 2 days weekend which is not included in MT4 charts make some difference, i’m not sure about it but i guess so.

Hi Rodolfo and Sherif. There are several reasons why the FLD’s might differ between ST and MT4.

The first is obviously the analysis … if any of the past six troughs are placed differently then you will get a different recent wavelength, and therefore a different displacement figure for the FLD.

The next reason is that MT4 plots a hybrid FLD by default - a combination of the trough and peak analysis. You can change this in your inputs: if you don’t use the defaults and turn off auto-styling then you can plot a trough-based FLD and/or a peak-based FLD. ST on the other hand plots the FLD’s for troughs and peaks individually. You are probably looking at the trough-based FLD in ST because that is the default, but you can look at both of them.

The final reason is the biggest one: ST fills in the blank times over weekends and over night, according to Hurst’s basic premise that cycles act over time whether we are trading or not. On the other hand MT4 completely ignores ignores non-trading bars, and simply leaves them out. By default the MT4 indicator displaces the FLD by bars and not time … because over months of testing the feedback we received was that this process worked as well, if not better than displacing strictly by time. Mostly it makes no difference, because the bars are all there and so the displacement is the same, but there are times when it does make a difference - particularly when you have a market that closes often (such as every night like your example above). The forex markets are 24 hour markets, and so the difference is only for a short period of time on a Monday (depending which cycle you are talking about obviously).
You can also change this default setting in the MT4 indcator if you turn off auto-styling, then you can have the FLD’s displaced by time (which is the correct Hurst method), as discussed here:

The MT4 indicators are designed to be fully customizable, and so by changing the inputs you will be able to match the FLD’s that ST has (assuming that your analyses are identical). Having said that however the default values were not simply made up, they were the result of extensive trial and error experimentation and they certainly make a very good starting point.