The Hull Moving Average (HMA) is a technical indicator developed by Alan Hull, designed to reduce lag and increase responsiveness compared to traditional moving averages. It is particularly useful for identifying market trends more quickly.

Syntax:

HullAverage[period](price)

• period: The number of periods used to calculate the HMA. The default is 20.
• price: The price type applied in the calculation (e.g., Close, Open, High, Low). The default is Close.

Example:

myHMA = HullAverage[30](close)

This example calculates the Hull Moving Average using a period of 30 based on the closing prices.

Additional Information:

The HMA employs weighted moving averages and square roots to achieve smoothness and reduce the delay typically associated with moving averages. It is often used in two main ways:

• To determine the overall trend direction: A rising HMA suggests a bullish trend, while a falling HMA indicates a bearish trend.
• To generate trading signals: For instance, a bullish signal might be considered when a short-term HMA turns upwards while the long-term HMA is also rising. Conversely, a bearish signal might be considered when a short-term HMA turns downwards while the long-term HMA is falling.

Understanding the behavior of the HMA can help in making informed decisions in trading strategies, though it is crucial to use it in conjunction with other indicators and analysis techniques to confirm trends and signals.