TrendLagging trend-smoothing indicator (low-lag)HMA

Hull Moving Average HMA

A smooth average that cuts lag dramatically by blending weighted moving averages.

Quick answer: The Hull Moving Average, created by Alan Hull in 2005, combines weighted moving averages of different lengths to produce a line that is both very smooth and very low in lag, tracking trend turns quickly.

In simple words

Most moving averages force a choice: smooth but slow, or fast but noisy. Alan Hull's HMA tries to beat that trade-off by cleverly combining weighted moving averages so the lag largely cancels out while the smoothness stays. The result is a line that turns quickly at reversals yet stays clean during trends, which makes it excellent for spotting trend changes early. The catch is that its speed can make it overshoot and, on very short settings, produce a few extra signals.

Hull Moving Average — visual

How Hull Moving Average looks on a chart

The HMA blends weighted averages to cut lag while staying smooth, so it turns at reversals noticeably faster than an SMA or EMA of the same length.

Professional explanation

The lag-cancelling trick

Hull's method computes a WMA of half the period and a WMA of the full period, then takes twice the half-period WMA minus the full-period WMA. This difference amplifies recent price and cancels much of the lag. He then smooths that result with a final WMA whose length is the square root of the original period, which restores smoothness without reintroducing the lag. The combination is what gives the HMA its unusual smooth-yet-fast character.

Why the colour/slope is the main signal

Because the HMA is so responsive, the most common way to trade it is simply by its slope or colour: when the HMA turns up it signals the trend has turned bullish, and when it turns down, bearish. Many platforms colour the line green when rising and red when falling. This slope-flip comes earlier than an SMA or EMA crossover, which is the HMA's core appeal for trend traders.

Speed versus overshoot

The same construction that removes lag can cause the HMA to overshoot — it can swing past price at sharp turns and, on short lengths, wiggle enough to give a false slope flip. It is smoother than a short EMA but not immune to noise. Choosing a sensible length (often a little longer than you would for an EMA) keeps the overshoot manageable while retaining the low-lag benefit.

Where it fits

The HMA suits traders who want an early, clean read on trend direction — trend-following and swing strategies especially. It is less about crossovers of two lines and more about the direction of a single fast line. Because it reduces lag so aggressively, it pairs well with a slower confirmation tool that filters out its occasional false turns in choppy conditions.

Formula

Hull Moving Average formula

HMA = WMA( 2×WMA(N/2) − WMA(N) ), smoothed over √N

Compute a WMA of length N/2 and a WMA of length N, take 2×the first minus the second, then smooth that series with a WMA of length √N (rounded).

N — The chosen HMA length
WMA(N/2) — Weighted moving average of half the length
WMA(N) — Weighted moving average of the full length
√N — The length of the final smoothing WMA, the square root of N (rounded)

How it is calculated

Choose a length N (e.g. 16 or 55).
Compute a WMA of length N/2 and a WMA of length N on the close.
Form the raw series: 2 × WMA(N/2) − WMA(N), which cancels much of the lag.
Smooth that raw series with a WMA of length √N (rounded to the nearest integer).
Plot the result as the HMA and read its slope or colour for trend direction.

Interpretation & signals

Traders read the HMA mainly by its slope: a turn up signals a bullish trend, a turn down bearish. Because it lags little, these turns come early — but need filtering in choppy markets.

Buy / bullish signals

The HMA turns up (slope flips from falling to rising).
Price holds above a rising HMA on a pullback.
A fast HMA crosses above a slower HMA.
The HMA colour changes to bullish (green) after a downtrend.

Sell / bearish signals

The HMA turns down (slope flips from rising to falling).
Price fails at a falling HMA on a rally.
A fast HMA crosses below a slower HMA.
The HMA colour changes to bearish (red) after an uptrend.

False signals to beware

On short lengths the HMA can flip slope on noise, giving false turns.
It can overshoot at sharp reversals, exaggerating the move.
In a tight range the slope flips back and forth without follow-through.

Settings, timeframe & conditions

Best settings

16–21 for responsive trend; 55 for smoother swing

Avoid

Very short HMA on noisy charts (over-sensitive slope)

Works best in

Trending markets with clean turns

Struggles in

Choppy ranges (false slope flips)

Advantages & limitations

Advantages

Dramatically lower lag than SMA or EMA of the same length.
Stays smooth despite its speed.
Slope/colour gives an early, clear trend read.
Excellent for catching trend turns early.

Limitations & disadvantages

Can overshoot at sharp reversals.
Short settings flip slope on noise.
More complex to compute and understand.
Still lags — just less — and needs a filter in ranges.

Combining Hull Moving Average with other indicators

Average Directional Index — ADX confirms whether a trend is strong enough to trust the HMA's slope flips, filtering its false turns in ranges.
Exponential Moving Average — Use a slower EMA as a trend filter so you take only the HMA turns that align with the bigger trend.
Supertrend — Pairing the HMA's early turn with Supertrend's volatility stop gives entry timing plus a trailing exit.

Practical examples (Nifty & Bank Nifty)

NIFTY example

Nifty tops out near 24,700 and, while an EMA is still drifting sideways, the HMA(21) has already rolled over and turned red — flagging the trend change several bars earlier. A trader who uses the HMA slope for direction gets an earlier warning, then confirms with a break of the prior swing low before acting, guarding against a false flip.

BANKNIFTY example

Bank Nifty snaps back sharply off a support level and the HMA turns up quickly, capturing the reversal well ahead of a 50-EMA. But in a subsequent choppy phase the same HMA flips colour twice with no follow-through — a reminder that Bank Nifty's volatility can trigger the HMA's false turns, so it is best paired with a trend-strength filter.

Common mistakes

Using too short an HMA and reacting to every noisy slope flip.
Trusting the HMA slope in a range without a trend filter.
Forgetting it can overshoot at sharp turns.
Treating its early turns as guaranteed rather than confirming with price.

Professional usage

Professionals value the HMA for one thing above all: an early, low-lag read on trend direction. They use its slope or colour flip as an alert that the trend may be turning, then confirm with price structure or a trend-strength tool before committing, because the very speed that makes the HMA useful also makes it prone to false turns in choppy markets. It is a timing aid within a trend framework, not a standalone system.

Key takeaway

The Hull Moving Average blends weighted averages to cut lag while staying smooth, so its slope turns early at reversals — its main signal is direction, not crossovers. Fast and clean in trends, it can overshoot and flip on noise, so confirm its turns in choppy conditions.

Frequently asked questions

What is the Hull Moving Average?

The Hull Moving Average, created by Alan Hull in 2005, combines weighted moving averages of different lengths to produce a line that is both very smooth and very low in lag. It is used mainly to catch trend turns early via its slope.

Who created the Hull Moving Average?

Australian trader Alan Hull developed the HMA in 2005 to reduce the lag of traditional moving averages while keeping them smooth.

How does the HMA reduce lag?

It computes a half-length and a full-length weighted moving average, takes twice the first minus the second to cancel lag, then smooths the result with a weighted average of length √N. This blend removes much of the lag while restoring smoothness.

How do you trade the Hull Moving Average?

The most common method is by its slope or colour: a turn up signals a bullish trend and a turn down a bearish one. These turns come earlier than an SMA or EMA crossover but need confirmation in choppy markets.

What are good HMA settings?

Lengths of about 16 to 21 give a responsive trend read, while 55 gives a smoother swing signal. Shorter settings react faster but flip on noise.

Is the HMA better than the EMA?

The HMA lags less and stays smoother than an EMA of the same length, which is its advantage. The trade-off is that it can overshoot at sharp turns and flip slope on noise, so it needs a filter in ranges.

Does the HMA repaint?

No, the HMA does not repaint on closed bars; its value for a completed bar is fixed. The current forming bar updates in real time until it closes, which is normal.

Why does the HMA overshoot?

The lag-cancelling step amplifies recent price, so at very sharp reversals the HMA can swing past price before settling. This is a side effect of removing lag.

Is the HMA good for intraday trading?

Yes, its low lag suits intraday trend trading, but on short timeframes it can flip on noise, so intraday traders pair it with a trend-strength filter or confirmation.

Can the HMA be used on Nifty and Bank Nifty?

Yes. Its early trend turns are useful on both, though Bank Nifty's higher volatility can trigger more false slope flips, so confirmation matters more there.

Is the HMA a leading indicator?

No, it is still a lagging indicator based on past prices, but its construction reduces the lag so much that its turns come noticeably earlier than traditional averages.

Voice search & related questions

Natural-language questions people ask about Hull Moving Average.

What is the Hull Moving Average in simple words?

It is a special moving average built by Alan Hull that reacts to price much faster than a normal one while staying smooth, so it spots trend changes early.

How do you use the Hull Moving Average?

Most traders watch its slope or colour — when it turns up the trend is bullish, when it turns down bearish — and confirm the signal before acting.

Is the HMA faster than the EMA?

Yes, the HMA has much less lag than an EMA of the same length, so it turns earlier at reversals.

What is the best HMA setting?

Around 16 to 21 is popular for a responsive trend read, while 55 gives a smoother, slower signal for swing trading.

Sources & references

Last reviewed 8 July 2026. Educational content only — not investment advice.