What is the Hull Moving Average (HMA) Supertrend?
The Hull Moving Average (HMA) Supertrend is an indicator designed by Alan Sherman Hull to combine the trendiness of the traditional Moving Average indicator with the ability to distinguish between a trending and a non-trending market. It was designed in an attempt to solve the issue of delay in traditional moving average indicators by introducing volatility and anchor points into the equation. The HMA Supertrend indicator uses the Hull Moving Average along with volatility to calculate a trigger line and determine the trend for the market, making it a powerful indicator for those who are interested in tracking a technical indicator to identify trading opportunities.
How to Use HMA Supertrend
The HMA Supertrend is relatively easy to set up and interpret. It consists of two components: the Trigger Line and the Anchor Point, which are calculated using the Hull Moving Average. The Trigger Line is created by applying the Hull Moving Average with a certain period of time to the price data, while the Anchor Point is calculated with a multiple of the Hull Moving Average. The Trigger Line and Anchor Point are then used to determine whether the market is in a trending or non-trending period. If the Trigger Line is above the Anchor Point, then the market is considered to be in a trending up period, while if the Trigger Line is below the Anchor Point, then the market is considered to be in a declining period.
HMA Supertrend Strategy
When using the HMA Supertrend indicator, the most common strategy is to buy when the Trigger Line crosses above the Anchor Point and the market is considered to be in an uptrend, and to sell when the Trigger Line crosses below the Anchor Point and the market is considered to be in a downtrend. However, when using this strategy, it is important to note that no indicator is infallible and that trading signals can be deceptive, hence why it is important to use additional indicators, such as Support and Resistance levels or volume, along with the HMA Supertrend. This can help provide additional confirmation, before taking the trade. Additionally, it is important to keep in mind that even though HMA Supertrend can be an excellent indicator for identifying trends, it does not necessarily indicate the direction of the trend.
Overall, the HMA Supertrend indicator is a powerful tool for those who are interested in tracking a technical indicator to identify trading opportunities. By combining the trendiness of a traditional Moving Average indicator and the ability to distinguish between a trending and a non-trending market, the HMA Supertrend indicator can be a key tool for traders and investors in the forex market.
Using the HullMA and Supertrend for Forex Trading
The Forex market is incredibly volatile, and making money requires a flexible, yet robust trading strategy. Pullback trading is an effective approach for the smart trader, and combining the two popular indicators, HullMA and Supertrend, can be a powerful tool to help maximize gains. Below, we’ll examine how this combination of indicators work together to provide a reliable trading system.
What is Pull Back Trading?
Pullback trading is a popular strategy that capitalizes on short-term retracement swings in an asset’s value before it heads back to its original trajectory. The order of operations all traders should follow is simple: wait for a strong trend to develop, then look for a pullback before entering a trade, and close the position as soon as the trend resumes. The most important part of this approach is the ability to identify when a pullback is happening in the first place.
Relying on HullMA and Supertrend to Identify Pullbacks
HullMA and Supertrend are indicators that work together to provide the trader with the indicators needed to spot a pullback in the market quickly and accurately. HullMA is a trend indicator that works on the principle of convergence-divergence of Moving Averages and takes into account volatility. Supertrend, on the other hand, is well known for its ability to identify price breakouts and pullbacks instantly.
This combination of two trading indicators allows the trader to analyze price movements with remarkable accuracy, oversimplifying the process of correctly identifying pullbacks and pinpointing successful trades. The combination of HullMA and Supertrend can be used in any marketplace, thanks to its accuracy in detecting overbought and oversold positions, which is essential for trading in volatile asset classes such as currencies.
The HullMA and Supertrend combination can be a powerful ally for traders looking to capitalize on the volatile Forex markets. These two indicators taken together offer a straightforward and reliable way to identify pullbacks, helping the trader take advantage of quick swings in the market. With proper technical analysis and usage, this combination can easily provide reliable trading results with far less risk than trading with just one indicator.