Hull Moving Average (HMA)

A weighted moving average designed to reduce lag while staying relatively smooth.

What it is

The Hull Moving Average (HMA) is a trend-following moving average developed by Alan Hull in 2005. It is built from weighted moving averages (WMAs) and is designed to follow price more responsively than a traditional simple or exponential moving average, while remaining reasonably smooth. Traders typically plot it as a single line over price and use it the way they use other moving averages — as a visual reference for the prevailing direction of price. Like all moving averages, the HMA is a lagging, derived calculation: it summarizes past prices and is not predictive. Trading involves risk of loss, and no indicator removes that risk.

How it works

The HMA combines three weighted moving averages to cut lag. For a chosen length n, it computes a WMA over n/2 periods and a WMA over the full n periods, then forms the series (2 x WMA(n/2)) - WMA(n). This step emphasizes recent prices to pull the line closer to current price. A final WMA whose length is the square root of n (rounded down to a whole number) is applied to that series to smooth the result. Because WMAs weight recent bars more heavily, and because the intermediate step subtracts the slower full-length average, the HMA tracks price with less delay than an equal-length SMA or EMA. The trade-off is that the final smoothing window is short, so the line can react quickly to fast moves. In Pine Script v6 this whole calculation is available as the built-in ta.hma().

How traders read it

• Traders often read the slope of the HMA as a gauge of trend direction — a rising line is commonly interpreted as upward momentum and a falling line as downward, though slope alone does not confirm anything.
• The HMA is frequently used as a dynamic reference level: price holding above it is often read as relative strength, and price below it as relative weakness.
• Some traders watch for the HMA changing color or slope (turning up or down) as a possible shift in the short-term trend, treating it as context rather than a trigger.
• A shorter length makes the line hug price more closely and react faster; a longer length produces a smoother, slower line. Neither setting is inherently 'better' — they answer different questions.
• Because the HMA reacts quickly, it tends to look steadier in trending conditions and choppier in ranges, so traders usually interpret it alongside the broader market context, not in isolation.

Common settings

A length of around 9, 16, or 20 on the chart's price source (close) is common, but the right value depends entirely on your timeframe and how much smoothing you want. Shorter lengths react faster and whipsaw more; longer lengths are smoother and slower.

Strengths

• Less lag than an equal-length SMA or EMA, so the line tracks price more closely.
• Stays relatively smooth despite being responsive, which can make trend direction easier to read at a glance.
• Available as a single built-in (ta.hma) in Pine v6, so it is simple to compute and reproduce reliably.

Pitfalls to watch

• Reduced lag is not zero lag. The HMA still derives from past prices and can turn after a move is already underway; it does not anticipate or predict price.
• Its responsiveness cuts both ways — in sideways or choppy markets the line can flip direction frequently, producing misleading whipsaw signals.
• The HMA can overshoot or curl sharply on volatile bars because of the weighting toward recent prices, which can exaggerate short-lived moves.
• A turning or 'crossing' HMA is not a buy or sell instruction. Treat it as one piece of context among many, not a standalone signal to act on.
• Optimizing the length to fit past data (curve-fitting) often does not carry forward. Settings that looked clean historically may behave very differently in live markets.

Pine v6 example

//@version=6
indicator("Hull Moving Average", overlay = true)

length = input.int(20, "HMA Length", minval = 2)
src    = input.source(close, "Source")

hma = ta.hma(src, length)

// Color the line by its slope (rising vs falling) for visual context only.
hmaColor = hma > hma[1] ? color.teal : color.red
plot(hma, "HMA", color = hmaColor, linewidth = 2)

Pro tip: Because the HMA reacts fast, many traders pair it with a slower reference (a longer HMA or a standard MA) so the quick line provides timing context while the slow line frames the larger trend — purely as a way to read context, not as an automated signal.

Educational only — not financial advice, not a recommendation to trade. No indicator is predictive; trading involves substantial risk of loss.