HMA Breakdown [NLR]

Apr 17

Hull Moving Average (HMA) is a great trend-following tool — it's smooth, fast, and more responsive than traditional MAs like EMA or SMA. But the problem?

Sometimes it gives signals that look sharp but are misleading — especially in noisy markets or when the price is chopping around.

This script breaks down the inner mechanics of the HMA to give you more context:

• Are the inputs to HMA actually diverging?
  
• Is there momentum behind the move?
  
• Is this trend about to reverse or just a pullback?
  

By plotting the components of HMA — and layering signal bands, color logic, and optional trend overlays — it gives you a visual breakdown of what's really going on under the hood.



What this indicator shows
HMA Trend (Main Line)
The Hull Moving Average (HMA) is plotted in bold, colored red or green based on internal conditions (not just price slope).

WMA Components (Fast & Slow)
Shows the two WMAs used inside the HMA calculation:

• WMA Half (faster) — reacts quickly to price
  
• WMA Full (slower) — smoother, less reactive
  

Their difference and crossover gives you clues on whether momentum is building or fading.

Signal & Band Structure

• A calculated upper band and lower band are used to track when HMA is leading or lagging momentum.
  
• When the HMA is below the band, trend may be weakening - this helps you filter false signals.
  

TMA Candle (Optional Visual)

• A synthetic candle shows whether the smoothed average is rising or falling compared to a few candles back.
  
• This is a simple visual cue to spot inflection points in the trend.
  

EMA Trend Overlay (Optional)
A pair of short-term EMAs built on a smoothed source helps you catch micro-trends or align your entries with the bigger trend.

Can act as an early heads-up or a trend confirmation layer.

What problem it solves

• Noisy Signals: Helps filter out weak or fake trend signals often seen in HMA-only systems.
  
• Visual Breakdown: Lets you see how each component of the HMA is behaving — so you’re not flying blind.
  
• Momentum Confirmation: Adds layered confirmation using fast-vs-slow WMA cross, signal bands, and mini trend overlays.
  

Best Used For:

• Trend-following traders who use HMA or WMA strategies
  
• Filtering entries/exits in momentum-based systems
  
• Visually confirming when a trend is real vs fake
  

Apr 18

Release Notes

Changed the visualization a bit to add fill color between main wma and lower band.

Apr 18

Release Notes

• Updated visualization
  
• Disabled synthetic candles by default, enable it from settings