Hurst Momentum Oscillator | AlphaNatt

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."

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📐 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
  

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💎 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
  

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📊 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

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🎯 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
  

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Developed by AlphaNatt | Fractal Market Analysis

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