Description:
The Hull Moving Average (HMA) is a technical analysis tool created by Alan Hull in 2005 that traders use to identify trends and potential trading opportunities. It is a variation of the traditional moving average that reduces lag and provides more accurate trend identification. The HMA is calculated using a weighted moving average, which gives more weight to recent price data while smoothing out short-term fluctuations.
Input Parameters:
- Length: Number of periods used in the calculation.
- Offset: The offset value is used to access the data of any candle or indicator with reference to the current candle, to access the current candle data we will use the offset value of "0", to access previous candle data "-1" offset value will be used.
- Price Source: The specific data points (such as open, high, low, or close) from each candle in a financial chart that an indicator uses for mathematical computations, enabling the calculation of metrics like the average over a specified period.
Use Case:
- Bullish/Bearish Trend: If the HMA line crosses above a long-term average, it could mean a strong bullish trend. Conversely, if the HMA line crosses below a short-term average, it can indicate increased selling pressure which could be an indication to exit existing trades.
This feature can be used in:
- Market Scanner
- Strategy Tester
- Dynamic Alerts
- Multi-Factor Alerts
- Smart Checklist
Do you want to learn more? Check out our Learning Center Article.
May 13, 2024