Introduction to the Hull Moving Average – HMA Indicator
Traditional moving average lines such as the Simple Moving Average (SMA) often have a couple of weaknesses. They are either too lagging or too erratic. Traders try to compensate for these weaknesses by adjusting the number of bars which the moving average line would calculate for. However, adjusting the number of bars used only moves the characteristics of the moving average line along a spectrum of being too lagging or too erratic. The Hull Moving Average was developed to address these weaknesses.
What is the Hull Moving Average – HMA Indicator?
The Hull Moving Average or HMA Indicator is a trend following technical indicator which is based on a modified version of a moving average line.
The Hull Moving Average uses a formula that reduces the lag that is prevalent in most moving average lines. At the same time it also plots a relatively smooth moving average line. This creates a moving average line which is responsive and reliable at the same time.
This version of the HMA Indicator plots a line which changes color. It plots a purple line to indicate a bullish trend direction and a red line to indicate a bearish trend direction.
How the Hull Moving Average – HMA Indicator Works?
The Hull Moving Average uses a couple of Weighted Moving Averages (WMA) within its formula. One has a specified number of periods used in its calculation while the other has half of the number of periods of the first WMA. The first WMA is then multiplied by two, then the second WMA is subtracted from the product.
HMA = WMA (2 x WMA(n/2) − WMA(n)), sqrt(n))
The color of the HMA line is dependent on the slope of the line. It plots a purple line if the HMA line slopes up and a red HMA line if the line slopes down.
How to use the Hull Moving Average – HMA Indicator for MT5
The HMA Indicator has a couple of variables which can be adjusted within its indicator settings.
“Moving average period” refers to the number of periods the HMA Indicator would use for its formula.
“Horizontal shift of the average in bars” allows users to shift the moving average line forward or back.
The HMA Indicator can be used as a trend reversal entry signal. However, it should be in confluence with other technical analysis indications.
Buy Trade Setup
When to Enter?
Open a buy order if the HMA line changes to purple coming from a support area.
When to Exit?
Set the take profit target at a logical resistance level.
Sell Trade Setup
When to Enter?
Open a sell order if the HMA line changes to red coming from a resistance area.
When to Exit?
Set the take profit target at a logical support level.
The HMA Indicator is one of the most effective trend following indicators which is based on a modified moving average line. It can be effectively used as a trend reversal signal or a trend direction filter. However, it is best used in confluence with other technical analysis indications as it is not accurate enough to be used as a standalone signal indicator.
MT5 Indicators – Download Instructions
Hull Moving Average – HMA Indicator for MT5 is a Metatrader 5 (MT5) indicator and the essence of this technical indicator is to transform the accumulated history data.
Hull Moving Average – HMA Indicator for MT5 provides for an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.
Based on this information, traders can assume further price movement and adjust their strategy accordingly. Click here for MT5 Strategies
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How to install Hull Moving Average – HMA Indicator for MT5.mq5 to your MetaTrader 5 Chart?
- Download Hull Moving Average – HMA Indicator for MT5.mq5
- Copy Hull Moving Average – HMA Indicator for MT5.mq5 to your Metatrader 5 Directory / experts / indicators /
- Start or restart your Metatrader 5 Client
- Select Chart and Timeframe where you want to test your mt5 indicator
- Search “Custom Indicators” in your Navigator mostly left in your Metatrader 5 Client
- Right click on Hull Moving Average – HMA Indicator for MT5.mq5
- Attach to a chart
- Modify settings or press ok
- Indicator Hull Moving Average – HMA Indicator for MT5.mq4 is available on your Chart
How to remove Hull Moving Average – HMA Indicator for MT5.mq5 from your Metatrader 5 Chart?
- Select the Chart where is the Indicator running in your Metatrader 5 Client
- Right click into the Chart
- “Indicators list”
- Select the Indicator and delete
Hull Moving Average – HMA Indicator for MT5 (Free Download)
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