Hull Moving Average (HMA) volatility Forex trading indicators - forex ea

Hull Moving Average (HMA)

Also referred to as Hull Average. This indicator is made by Alan Hull and addresses the issue of lag that other going Averages have actually.

Example:

Interpretation:

Make use of the Hull Moving Average as a filter to ensure cost direction.

If the price moves up and the HMA follows up, this signals a bullish market
Whenever price moves down and also the HMA follows this move, this signals a bearish market.

Calculation:

The lag is solved by combining two WMAs, with different periods; One with a duration equal towards the HMA itself. Plus the second equal to half that period.

The smoothing is carried out by adding applying a WMA towards the result, aided by the length corresponding to square root of the period.

HMA(periods) = WMA(2*WMA(periods/2) – WMA(periods)),sqrt(periods))