The Hull Moving Average responds quickly to price changes while remaining smooth. A change in its direction can foreshadow a short-term reversal. This strategy monitors consecutive Hull MA values and trades when the slope flips.
When the moving average transitions from falling to rising, a long position is opened. A shift from rising to falling initiates a short. Risk is controlled using an ATR-based stop placed beyond the recent candle.
Exits rely on that protective stop, capturing a portion of the move that follows the momentum shift highlighted by the Hull MA.
- Entry Criteria: Hull MA slope changes direction.
- Long/Short: Both.
- Exit Criteria: Stop-loss.
- Stops: Yes, ATR based.
- Default Values:
- HmaPeriod = 9
- AtrMultiplier = 2 ATR
- CandleType = 15 minute
- Filters:
- Category: Trend following
- Direction: Both
- Indicators: Hull MA, ATR
- Stops: Yes
- Complexity: Basic
- Timeframe: Intraday
- Seasonality: No
- Neural networks: No
- Divergence: No
- Risk level: Medium