Hull Moving Average Forex Trading Strategy

The hull moving average forex trading strategy  is based on the  hull moving average indicator.

If you have never heard about the hull moving average indicator then here are some basic info:

  1. it was developed by a guy called Alan Hull.
  2. it is an extremely fast and smooth moving average indicator
  3. therefore it eliminates lag and improves smoothing at the same time.
  4. It is also therefore reactive to price action

Here’s the link to download the hull moving average indicator: hma indicator.

TWO MAIN WAYS THE HULL MOVING AVERAGE CAN BE USED TO BUY OR SELL

  • Change of slope of the hull moving average indicator tells you to be ready to buy or sell.
  • If the slope starts to point up, get ready to buy. So you can enter immediately at market order or place a buy stop pending order 1-2 pips above the high of the candlestick that forms and causes the slope to point up (after that candlestick closes by the way…)
  • If the slope starts to point down, get ready to sell. you can enter a sell market order or place a sell stop pending order 1-2 pips under the low of the candlestick that causes the slope of hull moving average indicator to point downwards.

Slope Of Hull Moving Average

  •  2 Hull Moving Average Cross Overs: this is a typical situation with other moving averages, eg HMA 7 and HMA 14 crossover.
  • if the fast HMA crossed the slower one to the upside, that is an uptrend.
  • if the faster HMA crosses the slower one to the downside, that is a downtrend.
  • so what you can do is wait for the HMA crossovers to happen and then enter buy or sell order.
  • for a buy setup, you can either enter at market order or place a buy stop order just 1-2 pips above the high of the candlestick that forms that actually confirms the crossover. Place your stop loss at least 5 pips below its low.
  • For a sell setup, you enter a sell market order or place a sell stop order 1-2 pips below the low of the candlestick that confirms the crossover. Place your stop loss at least 5 pips above the high of that candlestick.
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Hull Moving Average Cross Overs

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