Hull MA with Alerts and Labels

The Hull MA with Alerts and Labels indicator provides a comprehensive trend-tracking system that combines multiple moving average types with a visual ribbon and automated signal alerts.

Usage

This tool is primarily used to identify market direction and potential trend reversals through the interaction of a primary moving average (MHULL) and a shifted version (SHULL). A bullish trend is identified when the price closes above the primary moving average for a user-defined number of confirmation candles while the primary average remains above the shifted average. Conversely, a bearish trend is confirmed when the price closes below the shifted average for the required period.

The indicator plots a dynamic ribbon between the two lines, changing color to reflect the current trend state. Traders can use the "BULLISH" and "BEARISH" labels to identify entry points or trend shifts as soon as the confirmation criteria are met.

Details

The script utilizes two key components for trend detection:

• MHULL: The main moving average calculated based on the selected variation (SMA, EMA, WMA, or HMA).
• SHULL: A version of the moving average shifted by 2 bars to serve as a baseline for trend strength and ribbon plotting.

The Hull Moving Average (HMA) option is specifically designed to reduce lag while maintaining smoothness, making it more responsive to price action than standard moving averages. The confirmation logic ensures that a trend is only signaled after a specific number of bars have consistently stayed above or below the threshold, helping to filter out market noise and false breakouts.

Settings

• MA Length: Determines the period used for the moving average calculations.
• Confirmation Candles: Sets the number of consecutive candles required to close above/below the MA before a trend signal is triggered.
• MA Variation: Allows selection between SMA, EMA, WMA, and HMA types.
• Source: Defines the price data used for calculations (e.g., Close, Open, HL2).
• Ribbon Transparency: Adjusts the opacity of the trend ribbon on the chart.
• Bullish/Bearish Ribbon Color: Customizes the visual colors for the trend ribbon.

FAQ

How do I use the confirmation candles setting? The confirmation candles setting requires the price to stay on one side of the moving average for a specific number of bars. Increasing this number will result in fewer, more reliable signals, while decreasing it makes the indicator more reactive.

What is the advantage of using the HMA setting? The Hull Moving Average (HMA) minimizes lag by using weighted moving averages in its calculation, allowing traders to see trend changes faster than with a standard SMA or EMA.

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