Triple Hull Moving Average

The Triple Hull Moving Average indicator provides a multi-layered trend analysis tool by plotting three concurrent Hull Moving Averages with color-coded slopes to highlight momentum shifts and potential crossover signals.

Usage

The Usage section describes how the script can be used to identify market trends and momentum.

• Trend Identification: The indicator uses color-coded lines to signify the current slope of each average. A green line indicates a positive slope (bullish momentum), while a red line indicates a negative slope (bearish momentum).
• Multi-Period Confirmation: By utilizing three different periods—Fast, Mid, and Slow—traders can look for alignment across different time horizons. For example, when all three lines turn green, it suggests strong bullish confluence.
• Crossover Signals: The interaction between the Fast and Slow HMA can be used to identify potential entry or exit points. A "Fast HMA" crossing above a "Slow HMA" often indicates an acceleration in upward momentum.
• Alert System: The script includes built-in alerts for slope changes (directional turns) and period crossovers, allowing for real-time monitoring of trend shifts.

Details

The Hull Moving Average (HMA) was developed by Alan Hull to solve the lag problems inherent in traditional moving averages while maintaining a smooth curve. It achieves this by utilizing a combination of Weighted Moving Averages (WMA) and a square root lookback period.

This specific implementation plots three HMA instances simultaneously to provide a comprehensive view of the market structure. The visual output is categorized by line thickness, with the Fast HMA being the thinnest and the Slow HMA being the thickest. This hierarchy allows for immediate visual distinction between short-term noise and long-term trends. This indicator refactors and optimizes logic originally conceptualized by cmkirkham, utilizing the core HMA calculation methods shared by mohamed982.

Settings

• Fast period: Determines the lookback length for the most sensitive HMA line (default: 9).
• Mid period: Determines the lookback length for the intermediate HMA line (default: 21).
• Slow period: Determines the lookback length for the least sensitive HMA line (default: 55).

FAQ

How does the Triple Hull Moving Average reduce lag?
The HMA calculation uses a specific mathematical formula involving WMAs that places more weight on recent price data while smoothing out fluctuations, making it more responsive than a Simple Moving Average (SMA) or Exponential Moving Average (EMA).

What do the color changes signify?
The colors change based on the slope of the moving average. If the current value is higher than the previous bar's value, the line turns green. If the current value is lower than the previous bar's value, the line turns red.

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