Introducing Hull Moving Average – HMA Indicator
Traditional moving averages such as simple moving averages (SMAs) often have several weaknesses. They are either too slow or too unstable. Traders try to compensate for these weaknesses by adjusting the number of bars that moving averages calculate. However, even if we adjust the number of bars used, the characteristics of the moving average line will simply move along a spectrum that is too lagging or too unstable. The Hull Moving Average was developed to address these weaknesses.
What is Hull Moving Average – HMA Indicator?
The Hull Moving Average or HMA indicator is a trend following technical indicator based on a modified version of the moving average line.
The Hull Moving Average uses a lag-reducing formula common to most moving averages. At the same time, it also plots a relatively smooth moving average line. This creates a moving average that is both responsive and reliable at the same time.
This version of the HMA indicator plots a line with changing colors. The purple line indicates the bullish trend direction and the red line indicates the bearish trend direction.
Hull Moving Average – How does the HMA indicator work?
The Hull Moving Average uses several Weighted Moving Averages (WMA) in the formula. One with the specified number of periods used in its calculation and the other with half the number of periods from the first WMA. Then the first WMA is doubled and 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 depends on the slope of the line. Plot a purple line if the HMA line is up, and a red HMA line if the line is down.
How to Use Hull Moving Average – HMA Indicator For MT5
The HMA indicator has several variables that can be adjusted within the indicator settings.
“Moving Average Period” refers to the number of periods that the HMA indicator uses in its formula.
‘Horizontal shift of bar average’ allows the user to shift the moving average line forward or backward.
The HMA indicator can be used as a trend reversal entry signal. However, it should be consistent with other technical analysis indicators.
When do you want to enter?
Place a buy order when the HMA line turns purple from the support area.
When will you finish?
Set the take profit target to the logical resistance level.
sell trade settings
When do you want to enter?
Place a sell order when the HMA line turns red from the resistance area.
When will you finish?
Set your take profit target to a logical support level.
The HMA indicator is one of the most effective trend following indicators based on modified moving averages. It can be effectively used as a trend reversal signal or trend direction filter. However, it is not accurate enough to be used as a standalone signal indicator, so it is best used in conjunction with other technical analysis indicators.
MT5 Indicator – Download Instructions
The 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 historical 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 anticipate further price movements and adjust their strategies accordingly. Click here for MT5 strategies
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How to install Hull Moving Average – HMA Indicator For MT5.mq5 on MetaTrader 5 Chart?
- Download Hull Moving Average – HMA Indicator For MT5.mq5
- Copy Hull Moving Average – HMA Indicator For MT5.mq5 to Metatrader 5 Directory / experts / indicators /
- Start or restart your Metatrader 5 client
- Select the chart and timeframe on which to test the mt5 indicator
- Search for “Custom Indicators” in the navigator, which remains mostly in the Metatrader 5 client
- Right click on Hull Moving Average – HMA Indicator For MT5.mq5
- Attach to chart
- change the settings or[OK]press
- Indicator Hull Moving Average – HMA indicator for MT5.mq4 is available on the chart
How to remove Hull Moving Average – HMA Indicator for MT5.mq5 from Metatrader 5 Chart?
- Select the chart with the indicator running in the Metatrader 5 client
- right click on the chart
- “Index list”
- Select indicator and delete
Hull Moving Average – HMA Indicator For MT5 (Free Download)
Click below to download.