Multiple Hull Moving Average

The Multiple Hull Moving Average indicator plots three independent Hull Moving Average (HMA) lines on the chart to provide a comprehensive view of market trends and momentum shifts through multi-period crossover analysis.

Usage

The Usage of the Multiple Hull Moving Average centers on identifying trend alignment and potential entry or exit points across different time horizons. By plotting three distinct HMAs—typically categorized as fast, medium, and slow—traders can observe how short-term price action interacts with longer-term trends.

Common applications include:

• Crossover Strategies: A "Golden Cross" occurs when a shorter-period HMA crosses above a longer-period HMA, suggesting a bullish shift. Conversely, a "Death Cross" occurs when it crosses below, suggesting bearish momentum.
• Trend Filtering: Traders may use the longest HMA (e.g., 100 periods) to determine the overall trend bias, only taking long positions when the price and shorter HMAs are above it.
• Support and Resistance: In trending markets, these moving averages often act as dynamic support or resistance levels where price may consolidate before continuing its primary move.

Details

The Hull Moving Average (HMA), developed by Alan Hull, is designed to reduce the lag found in traditional moving averages while maintaining a smooth curve. It achieves this by using a weighted moving average (WMA) of the difference between two other WMAs with different periods.

The mathematical construction follows this logic:

1. Calculate a WMA with period $n/2$ and multiply it by 2.
2. Subtract a WMA with period $n$.
3. Calculate a WMA of the result using the square root of period $n$.

This specific implementation allows for three concurrent calculations, facilitating a "triple moving average" system. The script was originally developed by Alex Orekhov (everget) and has been optimized for visual clarity and alert functionality.

Settings

The indicator provides the following settings for each of the three moving average lines:

• 1st Length: The lookback period for the first HMA line (default is 20).
• 1st Source: The price data used for the first calculation (default is Close).
• 2nd Length: The lookback period for the second HMA line (default is 50).
• 2nd Source: The price data used for the second calculation (default is Close).
• 3rd Length: The lookback period for the third HMA line (default is 100).
• 3rd Source: The price data used for the third calculation (default is Close).

FAQ

What makes the Hull Moving Average different from a Simple Moving Average (SMA)? The HMA is specifically engineered to eliminate lag and improve responsiveness to price changes. While an SMA can often trail significantly behind current price action, the HMA tracks price closely while filtering out minor market noise.

Can I set up alerts for specific crossovers? Yes, the indicator is optimized for alerts. It can trigger notifications when the 1st HMA crosses the 2nd HMA, or when the 2nd HMA crosses the 3rd HMA, allowing you to monitor trend shifts without watching the screen constantly.

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