In order to determine the optimal point for opening a trading position, we need to perform a qualitative analysis of the situation in the market. Many traders use indicators, including moving averages, for this purpose. However, they have a significant disadvantage – the delay, because the calculations use the average price values for previous periods. Australian trader Hal has decided to work on this problem. As a result, there appeared a moving average, named by his name sliding average of the Hala (Hull Moving Average). HMA’s not late. This was achieved by optimizing the calculation formula. Hal decided to average once again those MA values which were calculated in the standard way.
Hull Moving Average indicator
In order to get acquainted with the moving average of the Hal, you need to download and install the appropriate indicator. This is done according to the usual scheme, which I wrote about in the article “Cheat sheet on MT 4”. After that, open the indicator on the chart:
Op settings. They’re no different than the standard MA. The main parameter is the period. Default is 20. If you prefer conservative trading, this value can be increased. For example, up to 55. In this case, the number of signals will be significantly reduced, but their quality will increase.
How to trade on the moving average of the Hal
Hull Moving Average can be used in two ways in trading. The first one is to enter the market when the direction of the line changes, which is confirmed by the change of its color. Actually, that’s how the author himself suggested using HMA.
In addition, moving Halal average is used together with another indicator. This could be, for example, MACD or HMA Arrow. The latter draws two-color arrows on the chart, which are considered as recommendations for opening a trade position.
Close trade orders when the signal to open the opposite order appears.
The best way to trade with Hull Moving Average is to open a trading position based on the readings of 2-3 indicators, and to close it – when the color of the Halal indicator line changes.
I also want to note the peculiarity of this indicator. When working with ordinary MA, it is important to cross its price line. This is not relevant for HMA because there is no delay.
Try to include this indicator in your existing or new trading strategy and test its work in demo trading.For those who wish to do so, I give a link to the archive. You’ll find HMA Color and HMA Arrow.Moving Average Halal:indikator-halaFyodorov’s Inga22.10.2018