Hull Moving Average (HMA) - Indicator Formula

The Hull Moving Average (HMA) was developed by Alan Hull and is a weighted moving average that places more emphasis on recent prices. The Hull Moving Average is a sensitive and fast-changing moving average that nearly eliminates lag, while also remaining smooth at the same time, decreasing whipsaws.

A longer-term HMA can be used to identify trend direction. When the HMA is rising, it is signaling the trend is up and momentum is increasing to the upside. When the HMA is declining, it is signaling the trend is down and momentum is decreasing to the downside.

Calculation:

Calculate a Weighted Moving Average with period n / 2 and multiply it by 2

Calculate a Weighted Moving Average for period n and subtract if from step 1

Calculate a Weighted Moving Average with period Sqrt( n ) using the data from step 2

HMA = WMA( 2.0 * WMA( Close, n / 2.0 ) - WMA( Close, n ), Sqrt( n ))

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