Hull Moving Average Volatility Channel with Multiple Dispersion Bands

Summary

This indicator combines a Hull-style moving average with volatility bands based on standard deviations over three lookback periods: 9, 26, and 52 bars. It averages the three upper bands and the three lower bands to form the primary channel, with its midpoint shown as a central line. Two additional pairs of bands use wider and narrower multipliers, creating secondary zones around the same moving average.

The central line changes color according to whether it rises or falls from the previous bar. The accompanying explanation presents the channel as a way to follow trend while monitoring volatility, and cautions that unusually wide bands may signal uncertainty or a possible trend change. It recommends avoiding such phases but gives no precise width threshold, entry or exit rules, market examples, or performance tests. The indicator is therefore a charting aid rather than a fully specified trading strategy, and the document does not establish that its bands predict reversals or improve returns.

Key ideas

• The indicator builds a Hull-style moving average from weighted averages.
• It averages volatility bands calculated over 9, 26, and 52 bars into a main channel.
• Two additional band pairs use different width multipliers to show secondary zones.
• The central line's color reflects its direction compared with the prior bar.
• The note treats very wide channels as a caution signal but offers no validated trading rules.

Tags

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