what is the hull moving average

The Hull moving average (HMA) is a moving average designed by Alan Hull to reduce the lag of a normal moving average while keeping the line smooth. It does this by combining weighted moving averages of different lengths in a way that cancels much of the delay, then smoothing the result over the square root of the period. The effect is a line that turns to follow price faster than an equal-length simple or exponential moving average, at the cost of overshooting more in choppy markets.

hull moving average vs ema

Both react faster than a simple moving average, but the Hull goes further: it is engineered specifically to minimise lag, so it hugs price more closely and turns sooner than an EMA of the same length. That responsiveness cuts both ways — the Hull catches a real trend change earlier but also whipsaws more in a sideways market, producing more false turns. An EMA is the steadier compromise; the Hull trades stability for speed.

how is the hull moving average calculated

The Hull moving average takes a weighted moving average (WMA) of half the period, doubles it, subtracts a full-period WMA to cancel lag, and then smooths that combination with a WMA over the square root of the period. Written out: HMA = WMA(2 × WMA(n/2) − WMA(n)), smoothed over √n periods. You do not need to compute it by hand — every charting platform offers it — but the construction explains why it is both faster and prone to overshoot.

is the hull moving average better

It is not better in general, only different — faster and less laggy, but noisier and more prone to false signals in ranges, so "better" depends entirely on what you are trading. In a strong, clean trend the Hull’s early turns are an advantage; in a choppy market its responsiveness becomes a liability. As with any indicator, it does not create an edge, and any setting should be tested on the instrument and timeframe you actually trade rather than adopted because it looked good on one chart.

Hull moving average: less lag, and its trade-off

The previous lesson made the core point about moving averages: they lag, because an average of the past is always behind the present. Traders have spent decades trying to build a moving average that lags less without turning into noise. The Hull moving average, from the Australian trader Alan Hull, is one of the more elegant attempts — and dissecting it shows exactly what "less lag" costs.

HMA(n) = WMA( 2 × WMA(n/2) − WMA(n) ), over √n periods

WMA: weighted moving average — recent prices weighted more heavily
n: the chosen period, e.g. 20
√n: the final smoothing length — the square root of the period

Example: For a 16-period HMA: take WMA(8), double it, subtract WMA(16), then smooth that series with a WMA(4). The doubling-and-subtracting is what cancels most of the lag.

The trade-off you are buying

Less lag sounds like a free lunch, and it is not. The same responsiveness that lets the Hull catch a trend change early also makes it turn on moves that are just noise. In a strong, sustained trend that early turn is gold; in a sideways, choppy market it produces whipsaw after whipsaw — flipping direction on wiggles a slower average would have ignored. You have not removed the lag-versus-noise trade-off that governs every moving average; you have only moved along it toward speed.

Check yourself

You switch from a 20-EMA to a 20-Hull moving average on a choppy, sideways stock. What is the most likely result?

Simple bhasha mein

Kam lag, par zyada shor

Har moving average lag karta hai — woh past ka average hai. Hull MA (Alan Hull) lag kam karta hai: aadhe period ka weighted average double karke, poore period wala minus karke lag cancel, phir sqrt(period) pe smooth. Result: EMA se jaldi mudta hai. Par free lunch nahi — jitni jaldi turn, utna choppy market mein whipsaw. Strong trend aur higher timeframe mein faayda; sideways/noisy mein galat signal. Lag-vs-shor ka trade-off khatam nahi hua, bas speed ki taraf khisak gaya. Setting apne hi instrument pe test karo.

What to remember

Every moving average lags; the Hull is engineered to lag less while staying smooth.
It subtracts a full-length weighted average from a doubled half-length one, then re-smooths.
The result turns faster than an equal-length EMA — good in trends, noisy in ranges.
You do not escape the lag-versus-noise trade-off; you move toward the speed end of it.
Fit it to trending, higher-timeframe markets, and test any setting on what you trade.

You reached the endMark it done and keep your streak going.

Up nextRSI — relative strength index Previous: Moving averages

Finished this lesson?

Mark it done to track your progress through the curriculum.

Common questions

Short, direct answers to what people ask about this topic.

what is the hull moving average: The Hull moving average (HMA) is a moving average designed by Alan Hull to reduce the lag of a normal moving average while keeping the line smooth. It does this by combining weighted moving averages of different lengths in a way that cancels much of the delay, then smoothing the result over the square root of the period. The effect is a line that turns to follow price faster than an equal-length simple or exponential moving average, at the cost of overshooting more in choppy markets.
hull moving average vs ema: Both react faster than a simple moving average, but the Hull goes further: it is engineered specifically to minimise lag, so it hugs price more closely and turns sooner than an EMA of the same length. That responsiveness cuts both ways — the Hull catches a real trend change earlier but also whipsaws more in a sideways market, producing more false turns. An EMA is the steadier compromise; the Hull trades stability for speed.
how is the hull moving average calculated: The Hull moving average takes a weighted moving average (WMA) of half the period, doubles it, subtracts a full-period WMA to cancel lag, and then smooths that combination with a WMA over the square root of the period. Written out: HMA = WMA(2 × WMA(n/2) − WMA(n)), smoothed over √n periods. You do not need to compute it by hand — every charting platform offers it — but the construction explains why it is both faster and prone to overshoot.
is the hull moving average better: It is not better in general, only different — faster and less laggy, but noisier and more prone to false signals in ranges, so "better" depends entirely on what you are trading. In a strong, clean trend the Hull’s early turns are an advantage; in a choppy market its responsiveness becomes a liability. As with any indicator, it does not create an edge, and any setting should be tested on the instrument and timeframe you actually trade rather than adopted because it looked good on one chart.

The Hull moving average and the lag problem

The trade-off you are buying

Common questions