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Creator : Alan Hull
Period: 5
Hull Moving Average (HMA) uses weighted moving averages and gives greater importance to recent values, thereby reducing the lag in the moving averages.
In order to reduce the lag in the moving average calculation and make it more responsive, two different Weighted moving averages of price are used in the HMA formula. This is along with a third Weighted moving average.
Readings applicable to any trend following indicator or moving average can also be applied to the Hull Moving Average.
The rising HMA indicates a bullish trend when the price is above the HMA. A falling HMA when the price is below the HMA is indicative of a strong bearish trend.
Hull Moving Averages are also used when reading crossover signals based on double or triple moving averages.
The indicator table value in TradePoint & RZone also provides you with a list of all values of this indicator for any group of stocks. This will allow you to compare the readings of this indicator across different stocks.
This indicator is also available in the System Builder on RZone & TradePoint for all charting methods. Using the system builder, you can develop various strategies based on the different conditions already present in this indicator. Additionally, it can be used with other indicators or price patterns to develop effective trading strategies. For any group of stocks and market segments, you can scan and backtest stocks based on those strategies.
The indicator is applicable to all types of charting. It is calculated based on the number of columns on P&F charts, bricks on Renko charts, lines on Line-break charts, candles on Heikin-Ashi charts, and lines on Kagi charts. While the formula and reading of the indicators remain the same, they become more dynamic on these charts.