The Hull Moving Average (HMA) is a dynamic forex indicator that reduces lag and improves trend identification. In this guide, we’ll explore how HMA works, its advantages, and the best trading strategies to use it effectively.
The Hull Moving Average (HMA) is a highly responsive moving average that minimizes lag while maintaining smooth price action. It was developed by Alan Hull to provide faster and more accurate trend signals than traditional moving averages like SMA or EMA.
HMA is calculated using a weighted moving average formula with a special smoothing technique:
HMA = WMA(2 × WMA(n/2) – WMA(n)), √n
Where:
HMA can quickly identify trend direction:
Recommended HMA Settings:
Traders can use multiple HMAs to confirm trend shifts:
Best HMA Combinations:
Combining HMA with Relative Strength Index (RSI) can refine entries:
✅ Pros:
❌ Cons:
The Hull Moving Average (HMA) is an advanced moving average that improves trend accuracy while reducing lag. It’s an excellent tool for traders looking to refine their strategy.
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