About the Hull Moving Average Indicator
The Hull Moving Average Indicator is a refined technical tool designed to solve the primary flaw found in traditional moving averages: the trade-off between smoothness and lag.
Developed to provide a more responsive signal, this indicator follows price action closely while maintaining a smooth curve.
It achieves this by using a specific calculation involving square roots of the period, which allows it to react almost instantly to price pivots.
For a trader, this means catching a trend change much earlier than you would with a standard simple or exponential moving average.
When you apply this tool to your platform, it presents a dynamic line that changes color based on the current slope.
This immediate feedback helps you stay on the right side of the market without over-analyzing raw candle data.
It is highly effective for trend-following strategies, as it filters out minor market noise while highlighting the broader directional flow.
Whether you are scalping on lower timeframes or position trading on daily charts, the indicator provides a consistent framework for trend identification.
Free Download
Download the “hma-color-nrp-indicator.ex4” MT4 indicator
Key Features
- Reduced lag compared to standard moving averages for faster entry signals.
- A dual-colored line system that visually represents bullish and bearish sentiment.
- Versatile application across all currency pairs and metals like gold or silver.
- Customizable period settings to align with different trading styles and timeframes.
- Smooth trajectory that helps traders avoid premature exits during minor pullbacks.
Indicator Chart
The Hull Moving Average Indicator chart displays a continuous line that tracks the price path.
When the line turns green, it signals that the trend has shifted to the upside, suggesting a buy bias.
When the line turns red, it indicates the trend has shifted downward, suggesting a sell bias.
Guide to Trade with Hull Moving Average Indicator
Buy Rules
- Watch for the Hull Moving Average Indicator line to change color from red to green.
- Confirm that price is trading above the newly green signal line.
- Initiate a buy trade at the close of the candle that triggered the color change.
- Look for a steepening upward slope in the line as additional confirmation of strength.
Sell Rules
- Monitor the Hull Moving Average Indicator line for a transition from green to red.
- Ensure the price action has crossed or is staying below the red signal line.
- Open a sell position once the candle closes and the line color is locked in as red.
- Observe the downward angle of the line to gauge the intensity of the selling pressure.
Stop Loss
- For long positions, place your stop loss below the most recent swing low or support level.
- For short positions, set your stop loss above the most recent swing high or resistance level.
- Alternatively, you can use a fixed pip distance based on the volatility of the specific pair.
Take Profit
- Exit the trade when the Hull Moving Average Indicator line changes back to the opposite color.
- Set a profit target at a key horizontal resistance or support zone on the chart.
- You can also use a trailing stop to capture maximum gains during an extended trend.
HMA Signal Line + Forex Scalping Indicator MT4 Strategy
This MT4 scalping strategy combines the Hull Moving Average Signal Indicator with the Best Forex Scalping Indicator.
The HMA delivers fast trend direction signals: a green HMA line represents a buy signal and a red HMA line represents a sell signal.
The Forex Scalping Indicator provides arrow-based entries, where a blue arrow is a buy signal and a red arrow is a sell signal.
Together, these indicators create a fast and easy confirmation system for M1 and M5 scalping.
The strategy works well for traders who want simple visual signals and frequent trade opportunities.
The HMA identifies the immediate trend, while the scalping arrow confirms the exact moment to enter.
This combination reduces hesitation and helps avoid counter-trend entries during fast intraday movements.
Buy Entry Rules
- Wait for the HMA signal line to turn green.
- Look for a blue arrow to appear from the scalping indicator.
- Enter a buy trade at the close of the blue arrow candle.
- Place a stop loss 5 to 10 pips below the recent swing low.
- Take profit 8 to 15 pips on M1, or 12 to 20 pips on M5.
Sell Entry Rules
- Wait for the HMA signal line to turn red.
- Look for a red arrow from the scalping indicator.
- Enter a sell trade at the close of the red arrow candle.
- Place stop loss 5 to 10 pips above the recent swing high.
- Take profit 8 to 15 pips on M1, or 12 to 20 pips on M5.
Advantages
- Clear and simple entries using color changes and arrows.
- Good for fast-moving markets like London and New York sessions.
- Works well for traders who prefer visual confirmation.
- Produces many trade opportunities on M1 and M5.
- Combines trend direction with precise entry timing.
Drawbacks
- Fast spreads or slippage can reduce profit on M1.
- Requires quick execution and attention.
- Not ideal for low-liquidity periods.
Example Case Study 1
On EURJPY M1 during the London session, the HMA line turned green as momentum increased.
A blue arrow appeared shortly after during a small pullback.
A buy trade was entered with a stop loss 7 pips below the swing low.
Price pushed upward as volatility picked up and reached a 12 pip target within three minutes.
The HMA stayed green during the entire move, showing clear trend strength.
Example Case Study 2
On GBPUSD M5 during early New York trading, the HMA signal line turned red after a sharp drop.
A red arrow is printed on the next candle, confirming bearish continuation.
A sell position was opened with a stop loss 9 pips above the pullback high.
GBPUSD continued falling for the next few candles, reaching a 16 pip target smoothly.
Both indicators stayed aligned, making the trade low stress and easy to manage.
Strategy Tips
- Focus on active market sessions for cleaner signals.
- Avoid trading when the HMA frequently switches colors within a short period.
- Use slightly wider targets on volatile pairs like GBPJPY.
- Do not enter trades if the arrow appears against the HMA color.
- Backtest different timeframes to find the one that fits your style best.
Download Now
Download the “hma-color-nrp-indicator.ex4” Metatrader 4 indicator
FAQ
How does the Hull Moving Average Indicator reduce lag?
The indicator uses a weighted moving average calculation that emphasizes recent price data more heavily than older data.
By applying a square root of the period in its formula, it effectively “speeds up” the average, allowing it to stay tighter to current price movements than a standard EMA.
Can I use this indicator as a standalone strategy?
While the Hull Moving Average Indicator is powerful on its own, it works best when combined with price action or a secondary momentum oscillator.
This helps to confirm that the trend change has enough volume behind it to sustain a profitable move.
What period setting is best for the Hull Moving Average Indicator?
A common setting is a 20-period HMA for short-term trading or a 50-period HMA for identifying medium-term trends.
Smaller numbers will make the indicator more sensitive to price flips, while larger numbers provide a smoother, more stable trend line.
Summary
The Hull Moving Average Indicator offers a sophisticated way to track market trends with minimal delay.
Its main benefit lies in its ability to provide early entry points while keeping the trader focused on the dominant market direction.
While it is incredibly responsive, traders should be mindful of choppy markets where price moves sideways, as this can lead to frequent color changes.
Combining this tool with basic support and resistance levels can significantly enhance its overall accuracy and usability.
