Hurst Oscillator Calculation from Price Direction and Smoothed Flow

Summary

The document defines a Hurst oscillator using two smoothing steps. First, it calculates a centered moving average by offsetting a simple moving average of median price by half the selected period. Separately, it assigns a flow value based on the close’s direction versus the previous close: the high when the close rises, the low when it falls, and the high-low midpoint when unchanged. A moving average of that flow series is then compared with the centered average to produce the oscillator.

The indicator has period and smoothing inputs, and the page also refers to Hurst bands and Jim Hurst’s work on transaction timing. It supplies a calculation definition but no interpretation rules, trading thresholds, worked examples, or performance evidence. The formula therefore explains how the series is constructed, not when it should be bought or sold; users would need to assess its behavior and test any application independently.

Key ideas

• The oscillator compares a smoothed directional flow series with a centered moving average of median price.
• Flow uses the high, low, or their midpoint depending on the close’s movement versus the prior close.
• The calculation has period and smoothing parameters.
• The document defines construction but offers no trading rules or empirical results.

Tags

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