Hurst Bands for Dynamic Support, Resistance, and Divergence Analysis

Summary

Hurst Bands plot percentage-based levels around a central moving average of median price. The center uses a simple moving average over half the selected period, and three configurable deviation values define inner, outer, and extreme bands above and below it. The indicator also lets users show or hide each band group.

The document describes inner bands as possible return areas and outer or extreme bands as markers of increasingly overbought or oversold conditions. The levels can also serve as dynamic support and resistance, and the bands are commonly paired with a Hurst oscillator to look for divergences. These are interpretive uses rather than demonstrated trading rules: the document gives no tested entry or exit criteria, performance results, or guidance on choosing periods and deviations. Traders would need to evaluate signals and parameter sensitivity for their own markets and timeframes.

Key ideas

• The center line is a simple moving average of median price over the selected period.
• Inner, outer, and extreme bands are formed by applying configurable percentage deviations above and below the center.
• The bands are presented as potential support, resistance, and overbought or oversold reference levels.
• Pairing the bands with a Hurst oscillator can help identify divergences, though no validation evidence is provided.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.