Hurst Exponent

The Hurst Exponent measures the long-term memory of price series. H=0.5 means random walk (no edge). H>0.5 means trending (persistent). H<0.5 means mean-reverting (anti-persistent). The graph shows the H value directly — not normalized to 0-100.

Graph above 0.65 = trending market — use momentum strategies. Graph below 0.45 = mean-reverting — use oscillators and fade moves. Graph near 0.5 = random — reduce size and wait. Best used on 4H and 1D timeframes to identify the current market regime.