Calculating the Hull Moving Average and Viewing Its Intermediate Line

Summary

The document explains the Hull Moving Average as a method intended to make a moving average more responsive while retaining smoothness. Its calculation applies a weighted moving average to a weighted combination: twice the half-period average minus the full-period average, followed by smoothing over the square root of the period. It also notes that an implementation may let users change the average type and applied price; doing so alters the standard Hull Moving Average. The author prefers typical price as the input.

The article describes an optional way to display the intermediate, unsmoothed combination on a chart. That line can be inspected separately and, according to the document, used in a manner similar to two Hull averages with different periods. This is an indicator explanation rather than a tested trading strategy: it gives no entry or exit rules, market examples, or empirical comparison. Its claims about speed and reduced lag are presented as design characteristics, not as measured performance guarantees.

Key ideas

• The Hull Moving Average combines half-period and full-period weighted moving averages before applying square-root-period smoothing.
• Its design aims to improve responsiveness while preserving smoothness.
• Changing the average type or input price produces a variant rather than the standard Hull Moving Average.
• The intermediate weighted combination can be plotted separately for chart analysis.
• The document provides no strategy rules or empirical evidence about trading results.

Tags

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