What HMA shows
A moving average built to be smooth and fast at the same time.
A moving average built to be smooth and fast at the same time.
A moving average built to be smooth and fast at the same time.
It takes two weighted moving averages (one of length N / 2, doubled, minus one of length N) and smooths the result with a third weighted average of length square root of N. The result lags far less than a normal average.
9 for fast trades, 20 or 21 for swing trades, 55 for the larger trend.
Traders watch its slope: turning up is bullish, turning down is bearish.
Its speed means it also turns on small pullbacks.
ADX to check that a trend really exists, because a fast line turns often in a sideways market.
Sign in, open Genni Charts, press the "ƒx Indicators" button above the chart and choose HMA. Click its name on the chart to change the settings. It is free for every member.
More in "Moving averages": EMA · SMA · WMA · VWAP · All 25 indicators
This page is education, not investment advice. Trading involves substantial risk of loss. Read next: Trading indicators · Trading strategies · Candlestick patterns