MetaTrader’s Hurst Index indicator is a time series indicator that tracks the volumetric memory of asset prices. This data can be used to determine the future by analyzing the correlation between the consistency series and the inverse consistency series.
This indicator can help you determine whether the market trend is strong or weak. This indicator is suitable for novice and intermediate Forex traders. It is also suitable for different trading styles such as swing, intraday/extraday and scalping.
How to trade with the Hurst Index indicator
This is what the indicator looks like on your MT4 platform. The indicator is also shown in the screenshot.
The Hurst Index is not an oscillator that moves in the same direction as the trend. the direction of the Hurst Index indicator does not necessarily indicate a trend bias. For example, it can continue to move upward in a bearish market.
The indicator has a blue color and a 0.5% level (dashed line), which is shown in a separate window of the main chart. The current market condition of a financial asset is determined by the position of the blue line.
When the blue line rises above the 0.5 level, the market is trending (bullish/bearish). If the blue line is below the 0.5 level, then the market is considered to be moving in the opposite direction (range).
MT4’s Hurst Index indicator is a tool that helps you measure the time series consistency/inverse consistency of prices in order to predict further price movements. The indicator is also available as a free download.