Adaptive Hull Moving Average Using Volume or Volatility

Summary

This indicator varies the lookback length of a Hull moving average according to either a volume measure or a volatility comparison. When the selected condition is active, the lookback contracts; otherwise, it expands within user-set bounds. A slope calculation colors the average to distinguish directional movement from flatter or choppy conditions. An optional faster adaptive HMA, ATR-based distance bands, and chart alerts add context for possible entries, exits, and stretched prices.

The author describes using price relative to the average, a strong trend color, and RSI above or below 50 as entry confirmation, while presenting the indicator primarily as a visual aid for trend strength and dynamic support or resistance. The document gives example parameter ranges and a BTC/USDT futures chart configuration, but no strategy performance results. Its thresholds are subjective and may need adjustment by market and timeframe; the indicator can lag, and colored trend states do not establish that a move will continue.

Key ideas

• The HMA lookback adapts to either volume activity or a volatility comparison.
• A slope threshold and color scheme distinguish stronger directional movement from consolidation.
• Optional ATR bands show distance from the adaptive average and possible stretched conditions.
• The author suggests combining price position, trend color, and RSI for entry confirmation.
• The document offers settings and a sample chart configuration but no evidence of trading performance.

Tags

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