HMA - Hull Moving Average
Learn Hull Moving Average - the near-zero lag MA system for trend-following.
What is HMA?
Developed by Alan Hull, the HMA uses weighted moving averages and square roots to achieve near-zero lag while maintaining smoothness.
HMA = WMA(2×WMA(n/2) − WMA(n)), sqrt(n))
Uses weighted averages of half and full period, then smooths result
Uses weighted averages of half and full period, then smooths result
Key Advantages
- Near-zero lag: Reacts faster than EMA
- Smooth curve: Reduces whipsaws vs fast EMAs
- Direction changes: Color change signals trend shift
- Best for: Trend identification and trailing stops
Trading Strategy
- HMA rising (green) = uptrend, look for longs
- HMA falling (red) = downtrend, look for shorts
- HMA color change = potential trend reversal
- Combine with price action at HMA for entries