Hull Moving Averages

The Hull Moving Averages indicator provides a dual-layered trend-following system that combines the low-lag properties of the Hull Moving Average (HMA) with multi-timeframe pivot levels to identify market direction and key support/resistance zones.

Usage

The Usage section describes how the script can be used to identify trend shifts and potential price exhaustion points. The tool primary utilizes two HMA calculations to create a trend "cloud."

• Trend Identification: When the shorter HMA (HMA1) is above the longer HMA (HMA2), the cloud is colored green, indicating a bullish trend. Conversely, when HMA1 is below HMA2, the cloud is colored red, indicating a bearish trend.
• Support & Resistance: Users can toggle various pivot levels (Hourly, 4-Hour, and Daily). These serve as static price targets or areas where price might find rejection or support within the broader HMA trend.
• Crossovers: The interaction between the two HMA lines can be used to spot early trend reversals. A crossover where HMA1 moves above HMA2 suggests bullish momentum, while a crossunder suggests bearish momentum.

Details

The Hull Moving Average was developed by Alan Hull to solve the lag issues inherent in traditional moving averages. It achieves this by using the difference between two Weighted Moving Averages (WMA) of different lengths and then smoothing the result with a third WMA.

This specific implementation calculates two distinct HMAs (HMA1 and HMA2) based on user-defined lengths. It further integrates classic pivot point calculations—including Support (S1-S3) and Resistance (R1-R3) levels—requested from higher timeframes (1H, 4H, and Daily) to provide a comprehensive view of the market structure alongside the trend-following HMAs.

Settings

• Length 1: Determines the period for the first (typically faster) Hull Moving Average.
• Length 2: Determines the period for the second (typically slower) Hull Moving Average.
• Source: The price data used for the HMA calculations (e.g., Close, HL2, OHLC4).
• Show Filtered Pivots: Adjusts the pivot calculation logic based on price volatility to filter out minor fluctuations.
• Show Pivot Average: Displays a 3-period simple moving average of the calculated pivots.
• Show 1 Hour / 4 Hour / Daily Pivots: Toggles the visibility of pivot levels calculated from the respective timeframes.
• Show R3 & S3 Only On 1 Hour & 4 Hour: Restricts the visibility of the third level of support and resistance to intraday timeframes only.

FAQ

How can I identify a trend change with this tool? A trend change is indicated when the two HMA lines cross, causing the cloud color to flip between green (bullish) and red (bearish).

What is the purpose of the multi-timeframe pivots? Pivots provide horizontal levels of interest that are independent of the moving average. They help traders identify where price might pause or reverse even if the HMA trend is strong.

How do I get access to the Hull Moving Averages? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.