Exponential Hull Moving Average

The Exponential Hull Moving Average for NinjaTrader 8

The Exponential Hull Moving Average is similar to the standard Hull MA, but with superior smoothing. The standard Hull Moving Average is derived from the weighted moving average (WMA). As other moving average built from weighted moving averages it has a tendency to exaggerate price movement.

Indicator Description

The Exponential Hull Moving Average is similar to the standard Hull MA, but with superior smoothing. In the research paper “Moving Averages for Financial Data Smoothing” (Aistis Raudys, Edmundas Malčius, and Vaidotas Lenčiauskas – Vilnius University, Faculty of Mathematics and Informatics), the “smoothness” and “lag” of different Moving Averages were examined.

Basically, slow Moving Averages have a long lags and smooth well, whereas quick Moving Averages smooth poorly but exhibit little lag. The research paper examines which Moving Average with a specified smoothing exhibits the least lag. Comparing 19 different Moving Averages, the Exponential Hull Moving Average provides the ideal balance between smoothing and lag.

Other Library Indicators

A higher timeframe Exponential Hull Moving Average may be used in combination with other tools for technical analysis, such as channel indicators, momentum oscillators, support / resistance levels and volume analysis. For channel indicators, you may review the Commodity Channel Index, Donchican Channel or the Squeeze Channel. A Donchian Channel Strategy was reviewed in our Indicator Spotlight, as was the Squeeze Momentum setup. Furthermore, the Indicator Spotlight looked at how the TDI indicator utilizes the RSI in three timeframes.

For support / resistance, you may consider using Fib retracement levels, using one of our Fibonacci retracement tools, such as the indicator plotting the Prior Day Fibonacci Levels. Our Indicator Spotlight newsletter previously looked at a trading strategy using Fibonacci Retracements.

Additional support resistance levels can be found using the Average Range for a daily, weekly or monthly lookback period. This may for example be done using a ADR indicator, alternatively the Weekly Range Projections / Monthly Range Projections. The Indicator Spotlight furthermore reviewed the Average Daily Range Projections.

For volume analysis you may review the Relative Volume indicator. For instruments that lack reliable volume information (FX/Crypto currencies), you may consider using the Relative Ranges indicator, which was discussed this post.

Other that the Exponential Hull Moving Average, our moving average category includes the DWMA, Holt EMA, Moving Average Wave, MA Cross, Tillson T3, Trigger Lines. Additionally, you may want to review our trend analyis and trend filter indicators, such as the ADXADXVMADirectional Movement Index (DMI)Efficiency RatioButterworth FilterGaussian FilterLaguerre Filter, Rainbow Filter, Supersmoother Filter and the Supertrend indicator.

The Exponential Hull Moving Average indicator is available for NinjaTrader 8.