Combining Hull Moving Averages and Stochastic Crossovers for Trade Signals

Summary

This indicator combines a Hull moving average variant with a Stochastic Oscillator to generate directionally filtered entry signals. Traders can choose HMA, triple HMA, or exponential HMA smoothing. A buy condition requires a bullish stochastic crossover in oversold territory, a rising Hull line, price above the current and two-bar-old Hull values, and a higher close than the prior bar. Sell conditions reverse these tests, using an overbought bearish crossover and downward trend confirmation. The indicator also colors the Hull lines and marks signals and trend shifts on the chart.

The description gives configurable lookbacks and thresholds, including a 200-period Hull length, a 14-period stochastic, and oversold and overbought levels of 30 and 70. It recommends use in directional markets and higher-timeframe confirmation to reduce false signals. No backtest, execution rules, asset-specific validation, or performance evidence is provided, so the signals are a heuristic requiring independent testing and risk controls.

Key ideas

• The indicator filters stochastic crossovers through the direction of a selected Hull moving average.
• Buy signals require an oversold bullish crossover and additional price and trend confirmation.
• Sell signals apply corresponding overbought, bearish, and price-position conditions.
• The parameters can be adjusted, but the document provides no performance validation.

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