HullMovingAverageMr
- Indicators
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Bhavdip R Mangukiya -
8 years of experience in Personal trading and 4 years of experience in Coding.
So I can read your strategy understand it and develop it. Trading is really very hard thing.
some times some minor parameters can boost the result of the EA trading. I m able to find out those minor parameters. - Version: 1.0
Overview
Developed by Alan Hull in 2005, the Hull Moving Average (HMA) is a high-performance trend-following technical indicator designed to solve the age-old dilemma of moving averages: the trade-off between Lag and Smoothness.
Traditional Simple Moving Averages (SMA) and Exponential Moving Averages (EMA) reduce price noise but introduce a significant delay before identifying a trend change. Conversely, shortening the period reduces lag but triggers excessive false signals (whipsaws). HMA overcomes this limitation by utilizing Weighted Moving Averages (WMA) combined with a square-root scaling technique, delivering ultra-low lag while maintaining a smooth curve.
Key Features
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Near-Zero Lag: Reacts rapidly to price action and momentum shifts compared to standard SMAs and EMAs.
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Exceptional Smoothness: Filters out choppy price noise effectively without compromising reaction speed.
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Versatile Application: Works efficiently across all financial markets (Forex, Crypto, Indices, Commodities) and timeframes (M1 to Monthly).
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Customizable Inputs: Supports flexible lookback periods and multiple applied price options.
Calculation Logic & Algorithm
The HMA calculation is unique and follows a three-step mathematical pipeline:
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Dual WMA Calculation: Computes a WMA with half the period ($\text{WMA}_{n/2}$) and a WMA with the full period ($\text{WMA}_{n}$) using the selected applied price.
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Difference Scaling: Doubles the half-period WMA and subtracts the full-period WMA:
$$\text{Raw HMA} = (2 \times \text{WMA}_{n/2}) - \text{WMA}_{n}$$ -
Final Smoothing: Applies another WMA with a period equal to the square root of the primary period ($\sqrt{n}$) to the raw result, producing a smooth, responsive indicator curve.
Input Parameters
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HMA Period ( InpPeriod ): Defines the lookback window for the indicator (Default: 14 ). Smaller values increase sensitivity, while larger values provide broader trend stability.
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Applied Price ( InpAppliedPrice ): Selects the price type used for calculations. Available options include:
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Close (Default)
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Open
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High
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Low
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Median Price $(High + Low) / 2$
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Typical Price $(High + Low + Close) / 3$
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Weighted Price $(High + Low + Close + Close) / 4$
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How to Use in Trading Strategies
1. Trend Direction via Slope
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Bullish Trend: When the HMA line is sloping upward (current bar value > previous bar value), market momentum is positive. Traders look for buying opportunities.
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Bearish Trend: When the HMA line is sloping downward (current bar value < previous bar value), market momentum is negative. Traders look for selling opportunities.
2. Dual HMA Crossover System
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Combine a fast HMA (e.g., Period 9) with a slow HMA (e.g., Period 21).
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Buy Signal: Fast HMA crosses above the slow HMA.
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Sell Signal: Fast HMA crosses below the slow HMA.
3. Dynamic Support & Resistance / Trailing Stop
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Due to its rapid reaction speed, HMA acts as an effective dynamic trailing stop loss line during strong trending phases, helping traders lock in profits as momentum continues.
