Hull Moving Average: Smoothing Prices While Reducing Lag

Summary

The Hull Moving Average is presented as a way to smooth price fluctuations while reducing the lag associated with a conventional moving average. The document attributes this property to using the square root of the chosen period in its calculation, rather than relying only on the full period as a standard moving average does.

The indicator takes a calculation period and an applied price as inputs, and the description says it can be used across instruments and timeframes. It does not provide a formula, parameter-selection guidance, comparative measurements, or trading rules. The claim of reduced lag is explanatory rather than supported here by performance evidence, so the indicator’s usefulness as a signal would need to be assessed in context.

Key ideas

• The Hull Moving Average aims to smooth prices while reducing the lag of a conventional moving average.
• Its calculation uses the square root of the selected period.
• The indicator accepts a period and an applied price as inputs.
• The document provides no formula details, performance evidence, or trading rules.

Tags

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