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mohsinqureshii

DIG Hull Moving Average

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The DIG Hull Moving Average ― the HMA ― makes your moving average responsive to current prices while remaining smooth and not choppy. The beauty of the HMA is that it manages to eliminate lag almost completely while staying perfectly smooth.

This is what you are looking for in a moving average; it means that you can get your signals faster and make fewer mistakes.

 

How Does the HMA Compare to Other Moving Averages?

 

Let’s start by comparing the HMA to a simple moving average (SMA) of the same length. Just a quick reminder: The SMA calculation takes the past “n” closing prices and calculates their average; usually it is traded by taking a short and long SMA and when the two cross a signal occurs.

The SMA is associated with two problematic issues:

Longer length -> Lag becomes significantly bigger.

Sort length -> The MA becomes very choppy

 

attachment.php?attachmentid=35877&stc=1&d=1366926659

 

S&P500 Futures Daily Chart: On the chart you can see the standard SMA (length 34) in cyan/light blue, and our _DIG__Hull_Moving_Average (length 34) in yellow. The left side of the chart shows that while the SMA is still going up against the market the HMA is catching both pivots and switching direction while remaining smooth.

You can also see how big the delay/lag actually is by looking at the two vertical lines on the right; the SMA changes its direction about 15 bars later than our HMA – this means that you would have gotten into the trade earlier and enjoyed that nice bearish move.

Now let’s add the standard exponential moving average (EMA). The main idea behind the EMA is to provide more significance to the newer data there for eliminating lag; you will notice that the HMA is actually even better than the EMA as it will react faster but remain smooth.

 

attachment.php?attachmentid=35878&stc=1&d=1366926769

 

S&P500 Futures Daily Chart:

 

SMA (length 34) in cyan/light blue.

EMA (length 34) in purple.

_DIG__Hull_Moving_Average (length 34) in yellow.

You can see that the EMA is between the HMA and the SMA. It is more responsive than the SMA, but a mile behind the HMA. You can also see that the EMA line is not as smooth as the HMA line.

To sum up, the EMA is an improvement of the SMA, and our DIG Hull Moving Average takes this even further by providing a smoother and more precise moving average than you have ever seen before.

 

MA Trend Feature:

 

We have added another feature that makes this indicator even better. By using one simple switch, you can tell our DIG HMA indicator to color itself according to its direction.

 

Let’s see it in action:

 

attachment.php?attachmentid=35879&stc=1&d=1366926913

 

AAPL 30 Min Chart: The DIG HMA is color coded according to its direction, making it much easier to get signals quickly. We have placed two DIG HMA indicators, one with the length of 34 and one with the length of 80; you can see three great cross signals.

Key Features:

 

Low lag -> Get in before other traders.

Supper smooth moving average -> Eliminate false entries.

New Feature – Color coded according to trend.

Easy to use and supports any chart and any time frame.

 

Download the free indicator:

 

TradeStation: Download

MultiCharts – [ 64 bit - 8.0.5622 ]: Download

MultiCharts – [ 32 bit - 8.0.5620 ]: Download

NinjaTrader 7 and above: Download

 

** For NinjaTrader users:

 

The RAR contains 3 files:

- ZIP file with the code of the indicator.

- Template (*.xml) that demonstrates the correct use of the indicator.

- PDF file that explains the different parameters of the indicator.

Please extract the RAR files to your desktop.

In order to import the ZIP file go to File -> Utilities-> Import NinjaScript.

In order to open the templates, save the *.xml files in your NinjaTrader folder -> Templates-> Charts.

Open a new chart, Right click on the chart -> Templates -> Load..

DIG-Hull-Movgin-Average-3.jpg.f02605c01502f03cffb80d42617ffdc5.jpg

DIG-Hull-Movgin-Average-2.jpg.30d64b9d832be3f24ab18112ec6323c8.jpg

DIG-Hull-Movgin-Average-1.jpg.38c197a88aa8537a018a1839507686c0.jpg

_DIG__Hull_Moving_Average_[Ninja].rar

DIG-Hull-Moving-Average-MultiCharts-8.0.5620-32-bit.zip

DIG-Hull-Moving-Average-MultiCharts-8.0.5622-64-bit.zip

_DIG__Hull_Moving_Average[TradeStation].zip

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