Here are two other versions
Hurst Channels are used in the same way
Bollinger Bands are used. Here are two versions of Hurst Channels. First
the classic Hurst
Bands. I use this version daily and superimpose Tillson MAs on top of the
bands. A second version of the Hurst Bands displays a similar but more
simplistic display.
Trading with the Arps
Hurst Bands
Prices tend to regress toward the
mean, which is represented by the blue centerline on the Arps Hurst Bands
chart. It has been observed that when prices cross outside the outer boundaries
of the Arps Hurst Bands they almost invariably return to the centerline
(reversion to the mean).
The three curvilinear bands above
and below and paralleling the centerline represent one, two and three sigma
(standard deviations) of the closing prices from the mean centerline. There is
only a five-percent chance that prices will exceed the 2-sigma, and less than a
one-percent chance that they will exceed the 3-sigma line. So, when prices
reach these bands, a relatively low-risk entry opportunity presents itself to
trade in the opposite direction of the current move.
Since this particular indicator
draws channels retroactively, it will only draw channel lines from a number of
bars back equal to the Length input value. In other words, if Length is set to
150 bars, the indicator will only plot its values for the last 150 bars.
Whenever a new bar is created on the chart, the indicator is recalculated based
on last current 150 back. The more bars back you select, the less sensitive the
curvature of the indicator will be. We have found that values between 75 and
150 bars work best.
pds:= Input("LR Periods",10,100,55);
a:= Input("Stdev
Periods",10,100,30);
s1:=Input("Smoothing
Periods",2,50,10);
r:=LinearReg(C,pds);
x:=Mov(r,s1,S);
x1 :=x+1*Stdev(C,a);
x2 :=x+2*Stdev(C,a);
x3 :=x+3*Stdev(C,a);
y1:= x-1*Stdev(C,a);
y2:= x-2*Stdev(C,a);
y3:= x-3*Stdev(C,a);
x;
x1;
x2;
x3;
y1;
y2;
y3;
And, another variation:
CY1:= Input("Short Cycle length"
,1 ,1000 ,10 )/2;
CY2:= Input("Medium Cycle
length" ,1 ,1000 ,80 )/2;M1:= Input("Short
Cycle Multiplyer" ,.01 ,10 ,1 );
M2:= Input("Medium Cycle
Multiplyer" ,.01 ,10 ,3 );T1:= Ref(Mov(
CLOSE ,CY1 ,S ),CY1/2)+ M1*ATR(CY1 );
B1:= Ref(Mov( CLOSE ,CY1 ,S ),CY1/2)-
M1*ATR(CY1 );T2:= Ref(Mov(
CLOSE ,CY2 ,S ),CY2/2)+ M2*ATR(CY2 );
B2:= Ref(Mov( CLOSE ,CY2 ,S ),CY2/2)-
M2*ATR(CY2 );T1;
B1;T2;B2;
A:= Input("Periods?",1,300,21);
x:=Mov(C,a,S);
x1 :=x+1*Stdev(C,a);
x2 :=x+2*Stdev(C,a);
x3 :=x+3*Stdev(C,a);
y1:= x-1*Stdev(C,a);
y2:= x-2*Stdev(C,a);
y3:= x-3*Stdev(C,a);