OPEN-SOURCE SCRIPT

Hurst Momentum Oscillator | AlphaNatt

436
Hurst Momentum Oscillator | AlphaNatt

An adaptive oscillator that combines the Hurst Exponent - which identifies whether markets are trending or mean-reverting - with momentum analysis to create signals that automatically adjust to market regime.

"The Hurst Exponent reveals a hidden truth: markets aren't always trending. This oscillator knows when to ride momentum and when to fade it."


━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━

📐 THE MATHEMATICS

Hurst Exponent (H):
Measures the long-term memory of time series:
  • H > 0.5: Trending (persistent) behavior
  • H = 0.5: Random walk
  • H < 0.5: Mean-reverting behavior


Originally developed for analyzing Nile river flooding patterns, now used in:
  • Fractal market analysis
  • Network traffic prediction
  • Climate modeling
  • Financial markets


The Innovation:
This oscillator multiplies momentum by the Hurst coefficient:
  • When trending (H > 0.5): Momentum is amplified
  • When mean-reverting (H < 0.5): Momentum is reduced
  • Result: Adaptive signals based on market regime


━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━

💎 KEY ADVANTAGES

  • Regime Adaptive: Automatically adjusts to trending vs ranging markets
  • False Signal Reduction: Reduces momentum signals in mean-reverting markets
  • Trend Amplification: Stronger signals when trends are persistent
  • Mathematical Edge: Based on fractal dimension analysis
  • No Repainting: All calculations on historical data


━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━

📊 TRADING SIGNALS

Visual Interpretation:
  • Cyan zones: Bullish momentum in trending market
  • Magenta zones: Bearish momentum or mean reversion
  • Background tint: Blue = trending, Pink = mean-reverting
  • Gradient intensity: Signal strength


Trading Strategies:

1. Trend Following:
Trade momentum signals when background is blue (trending)

2. Mean Reversion:
Fade extreme readings when background is pink

3. Regime Transition:
Watch for background color changes as early warning

━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━

🎯 OPTIMAL USAGE

Best Conditions:
  • Strong trending markets (crypto bull runs)
  • Clear ranging markets (forex sessions)
  • Regime transitions
  • Multi-timeframe analysis


Market Applications:
  • Crypto: Excellent for identifying trend persistence
  • Forex: Detects when pairs are ranging
  • Stocks: Identifies momentum stocks
  • Commodities: Catches persistent trends


━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━

Developed by AlphaNatt | Fractal Market Analysis

Version: 1.0
Classification: Adaptive Regime Oscillator
Not financial advice. Always DYOR.

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.