What is the XABCD™ Hurst Exponent Indicator?

The XABCD Hurst Exponent Indicator is a way of measuring data persistence or anti-persistance in the market. This indicator will just be focusing on calculating how much persistence there is in the market to know if the XABCD reversal patterns have a greater probability of reversing. It won’t matter if your using stocks, futures or forex, or the time frame and charting style.

This indicator is included in our membership packages and is available for lease or purchase.

How to use the XABCD Hurst Exponent Indicator?

Hover your mouse over each part of the image below (red, yellow or green areas) to understand what the hurst values are telling you.

  • Persistence – Price has lots of persistence to keep moving forward and might break through the pattern.
  • Random – If hurst is random it can be a good idea not to use much (or any) leverage on the position.
  • Anti-Persistence – Better chance of a reversal with the non-linear data showing qualities that are anti-persistent

Putting the Hurst Indicator & XABCD Patterns

The Hurst Indicator is the orange line below the chart pattern and can help us weight trades very easily. It's also very easy to read because we want to see a low hurst value regardless if we're going long or short in the market.
Hurst indicator with XABCD Patterns

You’ll see the hurst indicator on this chart is the same as the one used in the diagram above so you should probably be able to read it. The pattern that is being measured by both Fibonacci Price and Fibonacci Time is indicating a move bearish. The XABCD hurst indicator is showing a level of “random”. This helps us by weighting our trades. This indicator is all part of our XABCD Pattern Indicator Suite.