Extra indicators
Hull Moving Average (HMA)
A very smooth and fast moving average that turns quickly with the price.
The idea in plain words
Fast averages are jumpy and smooth averages are slow. The Hull average combines weighted averages of two lengths to cancel most of the delay, then smooths the result.
How it is calculated
Twice a half-length weighted average minus a full-length one, smoothed again by a weighted average of square-root length.
HMA = LWMA(2 × LWMA(close, N/2) − LWMA(close, N), √N) (default N = 20)How to use it
- Trend direction: rising HMA up, falling down.
- Colour or slope changes mark early turns.
Drawing conclusions
- It can overshoot slightly at sharp turns.
Example
On a 4-hour chart the HMA(20) turns down one candle after a top where the SMA(20) needs six.
Prices in examples are illustrative.
Watch out for
- Quick turns mean more false signals in noise.
A little history
Alan Hull developed it in 2005.
Educational content only. No indicator or pattern predicts the future, and nothing here is investment advice.