Using Three Hull Moving Averages to Assess Trend Direction

Summary

The Triple Hull indicator combines three Hull Moving Averages calculated from closing, high, and low prices. The document describes the Hull average as designed to smooth price while responding quickly, and presents the three lines together as a broader view of current trend direction. Its suggested signal is to wait until all three averages show the same slope direction, then use that agreement as a trend assessment.

The three averages can also form a channel, which the author suggests treating as a possible no-trade area during range-bound conditions. The method is an indicator-based interpretation rather than a complete trading plan: it does not define precise slope or channel thresholds, entry and exit rules, risk controls, or supporting test results. It recommends experimenting with the averaging period to suit the instrument and trading style, so settings and reliability may vary across markets and users.

Key ideas

• The indicator applies Hull Moving Averages to closing, high, and low prices.
• Agreement in the slope direction of all three averages is proposed as a trend signal.
• The lines can form a channel that may help identify range-bound periods to avoid.
• The document recommends adapting the period to the instrument and trading approach.
• No specific trade rules or performance evidence are supplied.

Tags

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