Decoding HMA: The New Darling of Technical Trading

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Dear investment experts, today I will analyze a technical indicator that excites the trading market with a humorous and witty tone - the Hull Moving Average (HMA). This is not just a word game, but also a deep analysis of the technology.

First, let's turn our attention to the creator of HMA - Alan Hull. He is not an ordinary person, but a knight who harnesses digital horses in the digital world. The HMA he created is like a spirited horse racing on the track, aiming to provide smooth and efficient market dynamic analysis, thereby eliminating those annoying lagging phenomena.

The highlight of HMA lies in its calculation method. It is not just an ordinary moving average line, but an embodiment of a wise mathematical formula. The calculation process is like making a perfectly flavored cup of coffee: first, take the weighted moving average with a period of n/2, and then carefully allocate the weighted moving average with a period of n. This unique method allows HMA to excel in both speed and smoothness.

Imagine yourself sitting in the trading hall of the stock market, with various numbers and curves flashing on the screen in front of you. At this moment, HMA is like your intelligent navigator, helping you quickly capture the subtle changes in market trends through precise calculations. Although its calculation formula may be somewhat complex, it is a powerful weapon on the battlefield of investment.

In the vast sea of moving averages, the HMA is like a skilled swordsman, leading the way in the stock market with its speed and smoothness. Its quick nature allows the HMA to keep up with the market's pace, no longer being a follower lagging behind market trends. At the same time, its smooth characteristics ensure that the analysis results are not distorted by short-term market fluctuations.

So, how can one master this double-edged sword called the HMA? When the HMA value rises and the market trend is also rising, this is the best time to enter a long trade. Conversely, when the HMA value decreases and the market trend follows suit, it is time to consider entering a short trade. It's like choosing the right moment to open fire in a wild west shootout.

In conclusion, the Hull Moving Average (HMA) is like a jack of all trades, excelling in the world of technical trading. Its speed and smoothness make it the new favorite for market analysis. For those who aspire to sprint on the stock market racetrack, understanding and utilizing the HMA is undoubtedly a shortcut to success.

Now, HMA is not just a technical indicator, it is also a symbol of wisdom, a lighthouse that seeks enlightenment in complex markets. Below, I will explain how this indicator is implemented from a code perspective:

This code is a Pine Script script used to plot the Hull Moving Average indicator on the TradingView platform.

First, //@version=5 indicates that the script uses Pine Script version 5.

The next line of code defines an indicator function indicator(), which has several parameters:

title="Hull Moving Average": Sets the title of the indicator to "Hull Moving Average".

shorttitle="HMA": Sets the abbreviation of the indicator to "HMA".

overlay=true: Plots the indicator above the main chart.

timeframe="": No specific timeframe is specified (i.e., applicable to all timeframes).

timeframe_gaps=true: Allows displaying time gaps on the chart.

Then, user inputs are obtained through the following two lines of code:

Among them, the input.int() function is used to obtain integer type user input. The first parameter is the default value (in this case, 9), and the second parameter is the minimum value limit (in this case, 1). Here, the user input is saved in the variable length. In the other line of code, the default value and the title are used to obtain the user's selected source data type and save it in the variable src.

Next, calculate the Hull Moving Average in the following two lines of code:

Here, the ta.wma() function is used to calculate the weighted moving average line. The first parameter is the data to be calculated, and the second parameter is the window length. In this code snippet, the Hull moving average line is obtained by performing calculations on two different lengths of weighted moving average lines, and the result is saved in the variable hullma.

The last line of code uses the plot() function to plot the Hull moving average line on the chart.