The Hull moving average (HMA) is a technical indicator that smooths out price action.

The HMA indicator is calculated by first creating a weighting factor for each period. This weighting factor is based on the square root of the period. The default period is set to 9 periods.

The HMA then weights the current period's closing price and the previous period's HMA value by this factor. The result is a moving average that has less lag than other types of moving averages.

The Hull Moving Average (HMA) is a moving average that is designed to reduce the lag associated with traditional moving averages. The HMA is also less susceptible to price distortions than other moving averages.

The HMA can be used as a trend following or momentum indicator.

The HMA is calculated by first creating a WMA (Weighted Moving Average) of the period's prices using the square root of the period.

This value is then multiplied by two and finally subtracted from the current period's WMA.

The resulting value is the HMA.

The HMA line is plotted on a price chart, and traders can look for crossovers with the price to generate buy and sell signals. When the HMA line crosses above the price, it indicates a potential buy signal.

Similarly, when the HMA line crosses below the price, it indicates a potential sell signal.

In addition to crossovers, traders can also look for divergences between the HMA line and price action.

A bullish divergence occurs when the price makes a lower low but the HMA line makes a higher low. This means that momentum is starting to turn in favour of bulls, and a rally may soon follow.

Conversely, a bearish divergence occurs when the price makes a higher high but the HMA line makes a lower high. This means that momentum is turning in favour of bears, and a sell-off may be imminent.

The key takeaway from this article is that the Hull Moving Average is a moving average that is designed to reduce the lag associated with traditional moving averages.

The HMA can be used as a trend following or momentum indicator, and traders can look for crossovers and divergences to generate buy and sell signals.

The Hull Moving Average (HMA) is a technical indicator that combines a simple moving average with a weighted moving average. It's used to smooth out price action and provide accurate support and resistance levels.

The HMA is calculated by adding the current period's closing price to the previous period's weighted moving average. This gives the HMA more weight in recent periods, which makes it more responsive to price changes.

The HMA can be used in any time frame, but it's most commonly used on daily charts.

To find potential support and resistance levels, look for areas where the HMA line has been tested multiple times and held its ground. These areas are likely to provide support or resistance in the future if the market retraces to them.

When combined with other technical indicators, the HMA can provide even more accurate support and resistance levels. For example, you could combine it with Fibonacci retracement levels to find potential turning points in the market.

If you are a trader who is looking to take advantage of market trends, then creating a trading strategy with Hull Moving Average (HMA) could be a good option for you. This type of indicator is designed to smooth out price action and make it easier to identify trend changes.

When it comes to creating a trading strategy with HMA, there are a few things that you will need to keep in mind. First, you will want to make sure that you are using the proper time frame on your chart. This will help ensure that you are getting accurate signals from the indicator.

Next, you will need to pay attention to the direction of the moving average. If the moving average is pointing up, then this is indicative of an uptrend. Conversely, if the moving average is pointing down, then this is indicative of a downtrend.

Finally, you will want to use other technical indicators in conjunction with the HMA to confirm signals. Some popular options include support and resistance levels, as well as Fibonacci retracement levels.

By taking all of these factors into consideration, you can develop a robust trading strategy that can help you profit in both rising and falling markets.

You can start creating a strategy by selecting the "Hull Moving Average (HMA)" indicator from the list. An example strategy is shown in the image below. You can use the Hull Moving Average indicator to create a strategy after doing your own research.

WARNING: The entry and exit strategies in the images are prepared ONLY for educational purposes to explain how indicators work. It does not guarantee any profit.

When creating an algorithmic trading strategy, a rule set is usually created by using more than one indicator.

There are a few other indicators that can be used in conjunction with the Hull Moving Average (HMA), which can help to provide even more information about the market. Some of these indicators include:

The Relative Strength Index (RSI): The RSI is a momentum indicator that measures how fast the price is moving up or down. It can be used to identify overbought or oversold conditions, and it is often used as a leading indicator for potential trend reversals.

The Stochastic Oscillator: The Stochastic Oscillator is another momentum indicator, but it measures the relationship between price and time. Like the RSI, it can be used to identify overbought or oversold conditions, but it can also be used to generate buy or sell signals.

The MACD: The MACD is a trend-following indicator that uses moving averages to calculate momentum. It can be used to identify the direction of the trend, as well as potential trend reversals.