Hi atlunch,
Thanks for sharing your thoughts.
The extrapolated part is always kept within the equidistant curvilinear bands. When it is more volatile, and cause surges, it would only lead to bending of the curvilinear bands which is still drawn to encompass 98.5% of the prices. In that sense, if the band envelope is not bended, any mega surge upwards or acceleration to the downside will exceed the 1.5% as you rightly pointed out- but since our objective in the Hurst technique is always to draw an equidistant curvilinear envelope, the band will bend and curve with it so that we will only allow 1.5% of the price bars to exceed the equidistant bands. These Hurst bands are always equidistant and are unlike Bollinger bands, as you well know.
cheers
dascore
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Hi atlunch,Thanks for sharing your thoughts.The extrapolated...
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