OPEN-SOURCE SCRIPT
Hurst Exponent Smoothed
Description:
The Hurst Exponent Smoothed indicator provides a dynamic analysis of market behavior by calculating the Hurst Exponent over a specified lookback period. This tool is especially useful for identifying whether a market is trending or mean-reverting.
Key Features:
Lookback Period: Set to 90 by default, this parameter controls how many periods the indicator considers for its calculations. Adjusting this value allows you to fine-tune the sensitivity of the indicator to recent price action.
Market Analysis: The Hurst Exponent gives insights into the nature of price movement:
A value near 0.5 suggests a random walk, indicating that the market is unpredictable.
Values above 0.5 indicate a trending market where price movements exhibit persistence, suggesting that the current trend may continue.
Values below 0.5 point to a mean-reverting market, where price movements tend to reverse, making it a potential signal for contrarian trading strategies.
Usage:
Trend Following: When the Hurst Exponent is consistently above 0.5, it may indicate a strong trend. Traders can use this information to align with the current market direction.
Mean Reversion: If the Hurst Exponent falls below 0.5, it could signal that the market is more likely to revert to the mean, offering opportunities for mean-reversion strategies.
Visuals:
The indicator displays a smooth line oscillating between values, giving traders a clear visual cue for the current market condition.
The script is optimized for various timeframes, as demonstrated on the BTCUSD pair on a 270-minute chart. Traders can adapt the lookback period based on their trading style and the specific asset being analyzed.
Open Source: This script is open-source and free to use. Feel free to customize and adapt it to your needs!
The Hurst Exponent Smoothed indicator provides a dynamic analysis of market behavior by calculating the Hurst Exponent over a specified lookback period. This tool is especially useful for identifying whether a market is trending or mean-reverting.
Key Features:
Lookback Period: Set to 90 by default, this parameter controls how many periods the indicator considers for its calculations. Adjusting this value allows you to fine-tune the sensitivity of the indicator to recent price action.
Market Analysis: The Hurst Exponent gives insights into the nature of price movement:
A value near 0.5 suggests a random walk, indicating that the market is unpredictable.
Values above 0.5 indicate a trending market where price movements exhibit persistence, suggesting that the current trend may continue.
Values below 0.5 point to a mean-reverting market, where price movements tend to reverse, making it a potential signal for contrarian trading strategies.
Usage:
Trend Following: When the Hurst Exponent is consistently above 0.5, it may indicate a strong trend. Traders can use this information to align with the current market direction.
Mean Reversion: If the Hurst Exponent falls below 0.5, it could signal that the market is more likely to revert to the mean, offering opportunities for mean-reversion strategies.
Visuals:
The indicator displays a smooth line oscillating between values, giving traders a clear visual cue for the current market condition.
The script is optimized for various timeframes, as demonstrated on the BTCUSD pair on a 270-minute chart. Traders can adapt the lookback period based on their trading style and the specific asset being analyzed.
Open Source: This script is open-source and free to use. Feel free to customize and adapt it to your needs!
Script open-source
Dans l'esprit TradingView, le créateur de ce script l'a rendu open source afin que les traders puissent examiner et vérifier ses fonctionnalités. Bravo à l'auteur! Bien que vous puissiez l'utiliser gratuitement, n'oubliez pas que la republication du code est soumise à nos Règles.
Forever learning!
Clause de non-responsabilité
Les informations et publications ne sont pas destinées à être, et ne constituent pas, des conseils ou recommandations financiers, d'investissement, de trading ou autres fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.
Script open-source
Dans l'esprit TradingView, le créateur de ce script l'a rendu open source afin que les traders puissent examiner et vérifier ses fonctionnalités. Bravo à l'auteur! Bien que vous puissiez l'utiliser gratuitement, n'oubliez pas que la republication du code est soumise à nos Règles.
Forever learning!
Clause de non-responsabilité
Les informations et publications ne sont pas destinées à être, et ne constituent pas, des conseils ou recommandations financiers, d'investissement, de trading ou autres fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.