Hurst Channels and Oscillator

[Update1: New charts added, partly with double channels.]
[Update2: Improved FlowPrice indicator for the Hurst Oscillator.
                 Due to the massive interest in Hurst's indicators, they are now also available as download
                 for direct import into TOS. See bottom of this post.]
[Update3: User selectable coloring of the ExtrapolatedMA added.]

In the late 60's a NASA aerospace engineer J.M. Hurst published ‘The Profit Magic of Stock Transaction Timing’. Ironically, his book, by some considered the best book ever written about stock market cycles and swing trading, became available during the deepest and most extended Bear Market since the Great Depression. From 1972 on brokers couldn't give blue chip stock away in a Wall Street lunchroom. There was no market for a book by a stock market timer, and the book became a hidden treasure.

By the time stock market investing became sexy again Hurst was long forgotten old news. Peter Eliades and Mark Hulbert picked up the banner of Hurst cycle analysis and stock market cycles. To quote Peter Eliades:
“Sometimes a single moment changes all the ones that follow. For me it was the discovery of Hurst’s book, ‘The Profit Magic of Stock Transaction Timing’. It was responsible for changing my life.”

Sigma Band Break System

The Greek non-capital letter σ (sigma) is the symbol for standard deviation, so the word sigma is often used interchangeably with standard deviation. Standard deviation is used as a measure of the degree of spread in a population. John Bollinger used standard deviation in his famous indicator with two bands placed above and below a simple or exponential moving average as the midline.

The Sigma Band Break System takes advantage of the price spread by assuming that trending prices will form a channel, be it up or down sloping, in which prices will be contained for the duration of that particular trend. See as an example the daily chart of the SPX:

Notice how the different bands on more than a few occasions offer support or resistance. Trending or "impulsive" up or down moves are often confined between 1 sigma and 2 sigma bands.

Fibonacci Rainbows

In honor to the celebrations in Canada today and in the US on the 4th, it's time for fireworks.

Suppose the algo's do their calculus in Fibonacci numbers along exponential moving averages and this spectacle of rainbows could even paid off very well. Happy celebrations!