Hull Moving Average (HMA) indicator: smoother trend + faster signals (complete guide)

Hull Moving Average (HMA) is a moving average designed to reduce lag while staying smooth. Traders use the HMA indicator to confirm trend direction, time pullback entries, and spot momentum shifts earlier than traditional moving averages.

Hull Moving Average trend and pullback example

Example: HMA smooth trend direction + pullback timing.

HMA explained

HMA is designed for one goal: reduce lag while staying smooth. Traditional moving averages can be slow (lag) or noisy (fast settings). HMA tries to balance both by using weighted moving averages and a smoothing step based on the square-root of the period.

HMA is good for

trend bias, earlier turns, pullback entries, and cleaner visual trend reading.

HMA is NOT good for

ranging markets without filters — it can still whipsaw like any moving average.

How HMA is calculated (formula idea)

Most platforms calculate HMA automatically. Conceptually, HMA uses weighted moving averages (WMA) to emphasize recent prices, then applies smoothing to keep the line clean.

Common formula description

HMA(n) = WMA( 2×WMA(price, n/2) − WMA(price, n), sqrt(n) )

You don’t need to compute this manually. The key takeaway: HMA responds faster than SMA/EMA while keeping the curve smoother.

How to read HMA (trend + slope)

Rising HMA + price above

bullish bias. Prefer longs and buy pullbacks (with structure confirmation).

Falling HMA + price below

bearish bias. Prefer shorts and sell pullbacks (with structure confirmation).

A simple HMA filter many traders use: if price is repeatedly crossing the HMA back and forth, the market is likely ranging — reduce trend strategies and wait for structure clarity.

Best HMA settings (9/14/20/55)

Settings depend on timeframe and holding period. These are common starting points:

HMA 9 / 14

Faster signals for intraday timing. More sensitive, more whipsaws in chop.

HMA 20 / 55

Cleaner swing trend context. Great as a trend filter + pullback framework.

HMA strategies (rules-based)

1) Trend filter + pullback entry

Bias: only long when price is above rising HMA
Setup: pullback toward HMA zone
Trigger: rejection candle / reclaim / structure confirmation
Stop: below pullback swing (invalidation)
Target: prior high / next key level

2) HMA slope flip (momentum shift)

Wait for clear structure shift (break/reclaim)
Confirm HMA slope changes and holds
Avoid trading flips inside ranges
Use strict risk (small % per trade)

HMA vs EMA (when to use each)

Use HMA when

you want smoother trend reading with faster turns (less lag).

Use EMA when

you want a standard, widely-followed average and simple rules.

If you’re building educational content or common strategies, EMA pages usually attract broader search. HMA is great as an “advanced alternative” for traders looking for smoother, faster trend lines.

Risk management and common mistakes

Common mistakes

Trading HMA flips inside ranges
Using HMA as an exact line (treat as a zone)
No structure confirmation
Over-leverage because “trend looks clean”

Simple filters

Higher timeframe bias
Key levels (S/R) + structure
ATR / volatility awareness
Session timing (avoid dead hours)

Risk rules you can copy

Risk a fixed % per trade (example: 0.5%–1%)
Stops go beyond invalidation (structure)
Scale out at key levels
Track spread + slippage in fast moves

FAQs

Disclaimer: Educational content only. Trading involves risk and may not be suitable for all investors.

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