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Why don't you use his offset moving averages to project direction and
pricing
targets? Ira
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Ira, I always appreciate your questions and comments.
The moving averages are centered. This is critical to Hurst's approach and a
great trial to most potential users.
Direction is identified by the moving averages which are extrapolated to the
last data point (or into the future). The envelopes make the trend, and
cycle turns, highly visual.
Probable turning areas are projected from visual observation of previous
cycle turns and authoritatively confirmed by price penetrating the
extrapolated opposite envelope.
My price targets are the extrapolated envelopes, the extrapolated moving
average and halfway between the moving average and the envelopes depending
on the slope of the moving average and the volatility of price action within
the envelopes.
Normally, when I buy a turn up from the lower envelope, the intention is to
sell near the upper envelope. When I short a turn down from the upper
envelope, the intention is to cover near the lower envelope.
Within the trending segments of Hurst channels, normal trend lines work
well. Trend line breaks also help to identify envelope turns.
Stan
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