We present a rigorous derivation of the moment hierarchy of the density and pair density matrices of a two species fermion superfluid in coordinate representation. We discuss the tools to truncate at any desired level and present the derivation of the Extended Superfluid Thomas-Fermi (ESTF) fluiddynamical scheme. In order to establish the equation of state in equilibrium to be incorporated in the truncation, we extend the method of Papenbrock and Bertsch. We examine the dynamics of fluctuations in homogeneous fermion matter and show that it is consistent with the ordinary Random-Phase-approximation. We discuss some numerical results for equilibrium profiles and collective fluctuations of trapped cold gases.