Hull Moving Average (HMA) – FX Replay Guide

The Hull Moving Average (HMA) is a fast-reacting, smooth-moving indicator available in FX Replay that helps you visually track trend direction with reduced lag, offering more precise entry and exit timing than traditional moving averages.

Why Traders Use the HMA in FX Replay:

• Combines responsiveness (like short EMAs) with smoothing (like longer MAs).
• Ideal for real-time simulation and backtesting in both trending and transitional markets.
• Reacts faster to price shifts without being noisy.

How to Trade with the Hull MA in FX Replay

1. Determine Trend Direction:

• Rising HMA: Favor long positions.
• Falling HMA: Favor short positions.
• Flat HMA: Stand aside or prepare for breakout conditions.

2. Read Trend Strength:

• Steeper slope: Stronger trend.
• Flattening: Possible pause or reversal.

3. Time Your Entry/Exit:

• Crossover Strategy:
  • Add two HMAs (e.g., 12 & 50).
  • Crosses provide bullish/bearish trade signals.
• Support/Resistance Method:
  • Use the HMA line as dynamic support or resistance.
  • Watch for price reactions off the HMA during trend pullbacks.

4. Choose the Right Periods:

• Short-Term HMA (e.g., 9, 12):
  • Reacts quickly—great for lower timeframe scalping or fast replays.
• Long-Term HMA (e.g., 20, 50):
  • Ideal for swing trading simulations or structure-based narratives.

Calculation Insight:

• Built using Weighted Moving Averages (WMA).
• Core formula:
  HMA = WMA(2 × WMA(n/2) – WMA(n)), √n
  This helps reduce lag while keeping the curve smooth and responsive.

Power Tip:

Combine HMA with RSI, MACD, or HTF PO3° to confirm directional bias. In FX Replay, you can simulate entries with the Position Tool, observe risk metrics in real time, and replay the trade using Auto Breakeven for risk adjustment.