The Hurst exponent is a statistical measure of whether a price series trends or reverts to its mean. Values above 0.5 indicate trending behaviour, around 0.5 indicate randomness, and below 0.5 indicate mean-reversion. Traders use it as a filter to decide whether trend-following or counter-trend tactics fit the current regime.
This term belongs to Risk & statistics. See how it fits the bigger picture in The Money, part of the free DEGEN ACADEMY — or watch it play out on the live terminal.
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FAQ
What is Hurst exponent?
The Hurst exponent is a statistical measure of whether a price series trends or reverts to its mean. Values above 0.5 indicate trending behaviour, around 0.5 indicate randomness, and below 0.5 indicate mean-reversion. Traders use it as a filter to decide whether trend-following or counter-trend tactics fit the current regime.