📊 TECHNICAL
Hull Moving Average (HMA)
A fast, smooth moving average developed by Alan Hull in 2005 that uses nested weighted averages of the square root of the period to sharply cut lag while preserving smoothness.
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Live Demo — Hull Moving Average (HMA) applied to NIFTY 50 (illustrative)
PriceEMA(9)EMA(21)SMA(20)
What is HMA?
The Hull Moving Average was developed by Alan Hull in 2005 to solve the trade-off between smoothness and lag. Combining weighted averages at different lengths and re-smoothing over a sqrt(n)-period window tracks price far more closely than an SMA/EMA of the same period.
Formula
WMA1 = WMA(Price, n/2)
WMA2 = WMA(Price, n)
Diff = (2*WMA1) - WMA2
HMA = WMA(Diff, round(sqrt(n)))Parameters
| Parameter | Default | Description |
|---|---|---|
| Period (n) | 16 | Base lookback length |
| Source | Close | Price field used |
Signal Interpretation
- A slope change is one of the earliest visual cues of a trend turn among common moving averages.
- Price crossing the HMA is used as an early entry/exit trigger.
- Color-coded HMA (green rising, red falling) gauges short-term trend bias at a glance.
- Isolated slope flips in a sideways market are often noise.
Tips & Best Practices
- Use a longer HMA as a trend filter and a shorter HMA for entry timing.
- Confirm slope flips with volume or ADX given its speed makes it prone to whipsaws.
- Avoid using alone on very short timeframes without additional filters.