The Hull Moving Average (HMA) is a technical indicator used in financial markets to smooth price data and identify trends more effectively. It was developed by Alan Hull and introduced in his book "Active Investing." The HMA attempts to reduce lag while maintaining smoothness by incorporating weighted moving averages and a root mean square method.
Here's how it's calculated:
1. Calculate the Weighted Moving Average (WMA) of the price data over a specified period.
2. Calculate the WMA of the price data for half the specified period.
3. Double the result obtained in step 2.
4. Calculate the square root of the specified period.
5. Subtract the result obtained in step 4 from the result obtained in step 3.
6. Calculate the WMA of the price data for the period specified in step 5.
The resulting value is the Hull Moving Average. It's considered to be more responsive to price movements compared to traditional moving averages while still providing smoothing effects to filter out noise.
Traders often use the Hull Moving Average in various ways, including identifying trends, determining support and resistance levels, and generating buy/sell signals when the price crosses above or below the indicator. As with any technical indicator, it's important to use the HMA in conjunction with other tools and analysis techniques to make informed trading decisions.
This indicator is an extension of the Hull Moving Average where it shows optional signals for trend:-
- Optional Arrows on the chart where the trend changes
- Optional Text on the chart displaying trend direction
- Optional display of HULL line only displays trend description.
- Set how far away the arrow is spaced from the HMA with different time-frames.
Parameters
How To Install & Remove
First, make sure you have the cTrader trading platform installed and then unzip the file and double-click on it to automatically install it onto the platform.
Any Questions?
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