The Hull Moving Average (HMA) study is an indicator used to address the problem of lagging specific to Average studies. It applies Weighted Moving Average mechanism to smooth the data.
In Hull Moving Average, the lagging effect is eliminated by combination of two Weighted Moving Averages with different lengths: first one equal to period of HMA, second equal to the half-period. Smoothing effect is attained by applying WMA to the result, with length equal to square root of the period.
||The price used to calculate the HMA.|
||The number of bars in HMA period, used to calculate WMAs.|
||The displacement of the HMA study, in bars. Positive values signify displacement to the past.|
||The Hull Moving Average plot.|
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.