A MACD Variant Built from Hull Moving Averages

Summary

This indicator note adapts the moving average convergence divergence calculation by substituting Hull-style weighted moving averages for the usual averages. It describes a fast and a slow moving average, forms their difference as the MACD series, and smooths that difference with a simple moving average to create a signal line. The stated conventional parameter settings are 12 periods for the fast average, 26 for the slow average, and 9 for the signal line. The underlying Hull construction combines weighted averages over half-length and full-length windows, then applies another weighted average over a square-root-length window.

The note provides a formula but no chart, market example, backtest, or evidence that the substitution improves trading performance. Its variable names and parameter assignments appear inconsistent with the fast/slow description, so implementations should verify which window is intended for each line. It specifies an indicator, not entry, exit, or risk rules.

Key ideas

• The note replaces the standard MACD averages with Hull-style weighted moving averages.
• The MACD series is the difference between two averages, with a smoothed signal line derived from that difference.
• The described conventional settings use 12, 26, and 9 periods for the fast, slow, and signal calculations.
• The supplied formula has naming and assignment ambiguity that should be checked before implementation.
• No trading rules or performance evidence are provided.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.