3 x Hull Moving Average(50,100,200)

The 3 x Hull Moving Average(50,100,200) indicator plots three distinct Hull Moving Average lines on a single chart to help traders identify trend reversals and momentum shifts with significantly reduced lag compared to traditional moving averages.

Usage

The Usage section describes how the script can be used to analyze market trends and momentum across multiple timeframes. By combining three different periods, traders can observe the interaction between short-term and long-term price action.

• Trend Identification: When the HMA 50 is above the HMA 100, and the HMA 100 is above the HMA 200, the market is typically considered to be in a strong bullish trend. Conversely, the opposite alignment suggests a bearish trend.
• Crossover Signals: The indicator includes built-in alert logic for crossovers. A crossover of the HMA 50 above the HMA 100 often signals a potential bullish momentum shift, while a crossunder may indicate a bearish reversal.
• Support and Resistance: These moving averages can act as dynamic support or resistance levels during trending markets.

Details

The Hull Moving Average (HMA) was developed by Alan Hull to solve the lag problem inherent in traditional moving averages while maintaining a smooth line. The calculation involves using the weighted moving average (WMA) of the price. It prioritizes recent price action by calculating the difference between two different WMAs and then smoothing the result with a third WMA based on the square root of the period.

This specific implementation consolidates three specific lengths—50, 100, and 200—into one script. This allows for a cleaner workspace and more efficient resource usage within charting platforms. The indicator is optimized with alerts that trigger upon bar closure, helping to filter out "market noise" during intra-bar fluctuations. This script was originally created by ekgencsoy and has been refactored for modern Pine Script standards.

Settings

• HMA 50: Represents the short-term trend line (Blue). It reacts most quickly to price changes.
• HMA 100: Represents the medium-term trend line (Green). It serves as a filter between short-term volatility and long-term trends.
• HMA 200: Represents the long-term trend line (Red). It is used to identify the primary market direction.

FAQ

How does the Hull Moving Average reduce lag? The HMA uses a specific mathematical formula involving weighted moving averages of different lengths and the square root of the target period to ensure the line remains very close to the price action while staying smooth.

Does this indicator provide alerts? Yes, the script is configured to provide alerts for crossovers and crossunders between the 50/100 periods and the 100/200 periods, which are triggered once the candle closes.

How can I access the 3 x Hull Moving Average(50,100,200)? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.