Hull Moving Average (HMA)
A moving average designed by Alan Hull to reduce lag significantly while remaining smooth, by combining weighted averages of different lengths.
The Hull Moving Average (HMA), developed by Alan Hull, combines weighted moving averages of two different lengths through a specific formula, then applies a further smoothing step, aiming to significantly reduce the lag typical of standard moving averages while still producing a visually smooth line.
This generally lets an HMA track short-term price turns more closely than an SMA or EMA of a comparable length, at the cost of a more complex calculation and, like any faster-reacting average, more sensitivity to short-term noise. See Kaavon's dedicated Hull Moving Average article for the full calculation.
Examples
- An HMA is commonly used specifically because it turns direction sooner than a standard EMA of the same length, while remaining visually smoother than an unsmoothed fast average.
- The Hull Moving Average's construction specifically targets the lag/smoothness trade-off most other moving average designs have to balance.