Hurst Criticality Engine

The Hurst Criticality Engine (HCE) is an advanced trading indicator designed to detect potential breakout (BUY) and exhaustion (SELL) conditions by combining multi‑scale Hurst exponent analysis with tactical confirmations such as VWAP, RSI, volume spikes, Fibonacci log‑periodic patterns and price channels.

It is optimized for traders seeking structured confluence in volatile or trending markets, and can be applied across different timeframes, from intraday scalping (1m–15m) to swing trading (1h–4h).

What It Does
HCE identifies potential turning points and momentum shifts by evaluating market persistence and volatility across several dimensions. It generates three main types of labels:

CRITICAL Signals: Triggered when multiple Hurst scales align and tactical validations confirm the setup. These can indicate breakout (BUY) or exhaustion (SELL) conditions.

CPC (Critical Pivot Confirmation): Appears at structural highs or lows validated by Hurst exponent alignment and VWAP context.

PIVOT Labels: Marks confirmed structural highs (▼) and lows (▲) that can be used to anticipate reversals or continuation setups.

A dynamic Tactical Panel shows real‑time information on signal strength, VWAP zones, last confirmed signals and the current alignment of the Hurst scales.

How It Works
The indicator integrates several analytical components, each designed to filter noise and add context:

Hurst Exponent Analysis:

Evaluates price persistence across up to five customizable time scales (default: 10, 20, 40, 80, 160 bars).

A signal is considered when at least a minimum number of scales (default: 3) align as bullish (>0.6) or bearish (<0.4).

Rolling VWAP with Standard Deviation Bands:

Plots a rolling VWAP and three customizable bands (±1σ, ±2σ, ±3σ).

Signals are validated if price is correctly positioned relative to VWAP (above for BUY, below for SELL) or if it breaks the outermost band, suggesting volatility extremes.

RSI and Volume Confirmation:

Uses RSI (default: 14‑period) to confirm momentum alignment (e.g., oversold for BUY, overbought for SELL).

Incorporates volume spikes (default: 1.5× average) as an additional confirmation of institutional participation.

Fibonacci Log‑Periodic Patterns:

Validates critical signals by checking whether price oscillations align with harmonic Fibonacci ratios (default: 0.618).

Channel Detection:

Runs a 50‑bar regression channel to identify structural boundaries.

Signals are reinforced when price interacts significantly with channel extremes or breaks out from them.

Dynamic Scoring System:

Every signal receives a score from 0 to 8 based on the confluence of all the above factors.

Scores ≥6 indicate strong alignment, 4–5 medium, 2–3 weak and ≤1 neutral.

Why This Combination?
Each component provides different insights: the Hurst exponent captures market persistence, VWAP defines value areas, RSI and volume confirm momentum and participation, while Fibonacci and channels provide structural references. This synergy allows HCE to filter noise and focus on conditions where multiple factors align, increasing the reliability of the setups.

How to Use It
Add the Indicator to the Chart:

Works on any instrument and timeframe (e.g., 1m, 5m, 15m for scalping; 1h, 4h for swing trading).

Configure Settings:

General Parameters: Set the minimum number of Hurst scales, cooldown between signals and spacing mode (manual or adaptive).

Tactical Validations: Enable or disable RSI, volume, Fibonacci or channel filters.

VWAP Settings: Adjust length (default: 50 bars) and deviation bands.

Hurst Scales: Enable up to five scales and customize their lengths.

Tactical Panel and Labels: Choose compact or detailed view and toggle the display of CRITICAL, CPC, PIVOT or Observation labels.

Interpret Signals:

CRITICAL (B/S): Labels appear above/below price with tooltips showing the signal score, VWAP status and momentum context.

CPC (⚡CPC↑ / ⚡CPC↓): Indicates critical pivots confirmed at structural highs or lows.

PIVOT (▲ / ▼): Marks confirmed highs/lows for additional context.

Observation Labels (⚠️): Highlight potential setups not meeting full CRITICAL criteria.

Monitor the Tactical Panel:

Displays the VWAP zone, number of aligned Hurst scales, signal score and last confirmed signals.

Recommendations
Use HCE as a confluence filter, not as a standalone entry tool.

Focus on signals with Medium (4–5) or Strong (≥6) scores.

Combine CPC and PIVOT labels with broader context for swing or reversal trades.

Apply on clean charts (without overlapping indicators) for optimal visualization.

Always use proper risk management, as no indicator can predict outcomes with certainty.

Chart Setup and Alerts
The script includes customizable alerts for CRITICAL, CPC, PIVOT and VWAP breakouts.

For clear visualization, use it on charts without clutter.

Works best on liquid markets (e.g., forex, crypto, stocks) and in volatile or trending conditions