F.B_Double Hull Moving Average Trend Tracker

The F.B_Double Hull Moving Average Trend Tracker indicator utilizes two Hull Moving Averages (HMA) and their respective derivatives to identify trend direction, momentum strength, and potential market consolidation phases.

Usage

The Usage section focuses on interpreting the dual-HMA system to determine market sentiment. Traders use this tool to differentiate between trending markets and periods of indecision based on the synchronization of the two moving averages.

• Uptrend Identification: When both the short-term and long-term HMA derivatives are positive, the lines and price bars turn green. This indicates strong bullish momentum and a confirmed uptrend.
• Downtrend Identification: When both HMA derivatives are negative, the lines and price bars turn red, signaling a confirmed bearish trend.
• Consolidation and Weakness: If the slopes of the two HMAs disagree (one rising while the other falls), the output turns gray. This represents price consolidation, trend exhaustion, or a potential correction, suggesting a neutral or cautious market stance.

Details

The indicator is built upon the Hull Moving Average (HMA), a calculation developed by Alan Hull to reduce lag, increase smoothness, and improve responsiveness compared to traditional moving averages. The HMA achieves this by using a weighted moving average (WMA) of the difference between two other WMAs with different periods.

The "Trend Tracker" aspect is derived from the first derivative of each HMA. By calculating the difference between a Simple Moving Average (SMA) of the HMA and the HMA value itself, the script determines the current slope. The final trend signal is only triggered when both the fast HMA (Length 1) and the slow HMA (Length 2) share the same directional slope. This dual-confirmation logic filters out noise and ensures that short-term price movements align with the broader market trend.

Settings

Main Settings

• Length HMA 1: Determines the period for the first (typically faster) Hull Moving Average. Lower values increase responsiveness to recent price changes.
• Source HMA 1: Defines the price data used for the first HMA calculation (e.g., Close, Open, High, Low).
• Length HMA 2: Determines the period for the second (typically slower) Hull Moving Average. Higher values help identify long-term trend bias.
• Source HMA 2: Defines the price data used for the second HMA calculation.

FAQ

How do I interpret the gray bars?

Gray bars and lines appear when the short-term HMA and long-term HMA are out of sync. This typically happens during market ranging, pullbacks, or when a trend change is beginning but not yet fully confirmed by both timeframes.

What are the best timeframes for this indicator?

The indicator is versatile and can be applied to any timeframe. However, users often adjust the HMA lengths to match their trading style, such as using shorter lengths for scalping on 1-minute or 5-minute charts and longer lengths for swing trading on daily charts.

How do I access the F.B_Double Hull Moving Average Trend Tracker?

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