Exponential Hull Momentum

The Exponential Hull Momentum indicator provides a normalized momentum oscillator built from an Exponential Hull Moving Average (EHMA) transformation to measure smoothed directional pressure. By normalizing a low-lag price transform within its own rolling high-low range, the tool helps traders identify relative momentum states and regime shifts more effectively than standard price-based oscillators.

Usage

The indicator can be used to identify trend direction, momentum intensity, and potential exhaustion points. The output oscillates between -0.5 and +0.5, with 0 serving as the neutral midline.

• Momentum Regime: Values above 0 indicate a positive momentum regime, while values below 0 indicate a negative momentum regime.
• Momentum Intensity: As the oscillator approaches +0.5 (bright green) or -0.5 (bright red), it signals strong momentum persistence. These are momentum extreme zones rather than traditional overbought/oversold levels.
• Signal Line: An optional moving average can be applied to the oscillator to identify momentum acceleration or crossovers. For a histogram-style view, the MA style can be changed to columns in the settings.
• Transitions: A fast move through the zero line often signals a fresh momentum shift, while flattening values near extremes may suggest momentum exhaustion.

Details

This script utilizes an "Exponential Hull" construction, which replaces the Weighted Moving Averages (WMA) found in a classic Hull Moving Average with Exponential Moving Averages (EMA). The calculation involves:

1. A fast EMA on half the length.
2. A slow EMA on the full length.
3. A lag-compensation step: $2 * \text{Fast EMA} - \text{Slow EMA}$.
4. A final smoothing pass using the square root of the length.

The resulting series is then normalized using a Min-Max style range: $(\text{Subject} - \text{Lowest}) / (\text{Highest} - \text{Lowest}) - 0.5$. This ensures the oscillator remains bounded and comparable across different assets and timeframes.

Settings

Calculation

• Exponential Hull Calculation Period: Determines the smoothing length of the underlying EHMA subject.
• Calculation Source: The price source used for the EHMA calculation (default is Close).
• Normalization Period: The lookback window used to find the highest and lowest values for range normalization.

Signals

• Show Oscillator?: Toggles the visibility of the main momentum oscillator.
• Show Oscillator Moving Average: Toggles the secondary signal line.
• Moving Average Type: Select from various types including SMA, EMA, DEMA, TEMA, HMA, ALMA, and more.
• MA Period: The lookback period for the secondary smoothing line.

UI Settings

• Paint Candles according to Trend?: Colors the chart candles based on whether the oscillator is above or below zero.
• Show Static Levels?: Toggles the visibility of the ±0.4 and ±0.5 boundary zones.

FAQ

How do I use the Exponential Hull Momentum for entries?

Traders often look for zero-line crossovers to confirm momentum shifts or signal line crossovers for earlier indications of accelerating or decelerating momentum.

What is the difference between this and a Stochastic oscillator?

While a Stochastic oscillator measures where price sits relative to its range, this indicator measures where a low-lag smoothed transform (EHMA) sits relative to its own recent smoothed range, resulting in less noise.

How do I access this indicator?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.