Bollinger-Style Stops with a Tunable Hull Moving Average

Summary

This indicator description presents a modified version of BB stops, replacing the simple moving average associated with the original approach with a Hull moving average. The Hull average has a speed setting that can alter how quickly the indicator responds, and the version calculates multiple stop levels to provide additional reference points. It is intended to be used like other stop indicators.

The document offers no formulas, market-specific rules, or performance results. Its example applies the indicator to a daily chart and slows the speed setting, illustrating that the parameter can be adjusted. The author advises testing settings before using the indicator to make trading decisions. As a brief description, it does not explain how the stops are derived or establish whether the Hull-based version improves on the original; suitability depends on the instrument, timeframe, and validation method.

Key ideas

• The modified BB stops use a Hull moving average instead of a simple moving average.
• A speed parameter changes the Hull average's response.
• The indicator calculates multiple stop levels for reference.
• The example uses daily data with a slowed setting, but supplies no performance evidence.
• Settings should be tested for the intended trading approach before use.

Tags

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