HMA — Hull Moving Average

Overview

The Hull Moving Average was designed by Alan Hull to virtually eliminate lag while maintaining smoothness — it is one of the fastest moving averages available to traders. HMA is ideal for short-term trading strategies in fast-moving crypto and forex markets. Compare it with the EMA and other smoothed averages in our indicator guide library to find the right balance of speed and reliability.

How It Works

HMA uses a nested WMA approach: first it calculates WMA(n/2) and WMA(n), then computes 2 × WMA(n/2) − WMA(n), and finally applies a WMA of period √n to the result. This three-step process dramatically reduces lag compared to a standard WMA of the same length. Colour changes in the HMA line reflect momentum shifts.

Key Signals

• HMA colour change from red to green = bullish momentum shift.
• HMA colour change from green to red = bearish momentum shift.
• HMA slope change (flat to rising) signals early trend development.
• Price pulling back to HMA in a trend offers low-risk entry opportunities.

Common Mistakes

• Relying on HMA alone for entries — its speed can generate whipsaws in choppy markets.
• Using HMA with very short periods on noisy timeframes (1-minute charts).
• Not confirming HMA signals with momentum indicators like the RSI.