Hull Moving Average (HMA)
The Hull Moving Average (HMA) is a technical indicator used in the analysis of financial markets. It is a type of weighted moving average (WMA) that is designed to reduce the lag associated with traditional moving averages and provide more accurate signals. The HMA was developed by Alan Hull in 2005 and is based on the weighted moving average (WMA) and the simple moving average (SMA).
History of the Hull Moving Average
The Hull Moving Average was developed by Alan Hull in 2005. Hull was a successful trader and technical analyst who wanted to create a more responsive and accurate moving average. He combined the weighted moving average (WMA) and the simple moving average (SMA) to create the Hull Moving Average. The HMA is designed to reduce the lag associated with traditional moving averages and provide more accurate signals.
The HMA is calculated by taking the weighted moving average of the current period and the previous period, and then taking the simple moving average of the result. This helps to reduce the lag associated with traditional moving averages and provide more accurate signals. The HMA is used to identify trends and generate buy and sell signals.
Comparison Table
| Indicator | Lag | Accuracy |
|---|---|---|
| Simple Moving Average (SMA) | High | Low |
| Weighted Moving Average (WMA) | Medium | Medium |
| Hull Moving Average (HMA) | Low | High |
Summary
The Hull Moving Average (HMA) is a technical indicator used in the analysis of financial markets. It is a type of weighted moving average (WMA) that is designed to reduce the lag associated with traditional moving averages and provide more accurate signals. The HMA was developed by Alan Hull in 2005 and is based on the weighted moving average (WMA) and the simple moving average (SMA). For more information about the Hull Moving Average, you can visit Investopedia, TradingView, and StockCharts.
See Also
- Simple Moving Average (SMA)
- Weighted Moving Average (WMA)
- Exponential Moving Average (EMA)
- Bollinger Bands
- Relative Strength Index (RSI)
- Stochastic Oscillator
- Average Directional Index (ADX)
- Moving Average Convergence Divergence (MACD)
- Parabolic SAR
- On Balance Volume (OBV)
