HMA2
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This script is designed to generate a specialized technical analysis tool known as the Hull Moving Average (HMA). Unlike standard moving averages that can often lag behind current market prices, this specific logic aims to provide a smoother, more responsive trend line that reacts quickly to price changes while filtering out unnecessary "noise."
How the Logic Works
The script achieves its smooth yet responsive results by processing data through a multi-stage calculation:
1. Establishing the Foundation The tool starts by looking at the current period of time you have selected. It breaks this period down into smaller mathematical components—specifically, it calculates half of your chosen period and the square root of that period. These smaller figures are used as the building blocks for the final result.
2. Weighted Calculations Instead of treating every price point with equal importance, the logic uses a "Linearly Weighted" approach. This means it gives more weight to recent price data, ensuring that the indicator reflects what is happening now rather than what happened a long time ago. It focuses specifically on the opening prices of the candles to determine the trend.
3. Calculating Differences The script performs a subtraction process:
- It calculates a weighted average based on the smaller period (half-period) and doubles it.
- It then calculates a weighted average based on your full chosen period.
- By subtracting the second value from the first, the script identifies the "momentum" or the rate of change between these two different timeframes.
4. The Final Smoothing Layer In the final step, the script takes those calculated differences and runs them through one last smoothing process based on the square root of your period. This final pass rounds off any jagged edges, creating a fluid line on your chart.
Summary for the User
Essentially, this script doesn't just look at the price; it looks at how the price is moving across different time scales simultaneously. It calculates the difference between short-term and long-term trends and then smooths out that difference to create a single, continuous line. For a trader, this provides a visual representation of the market trend that attempts to be as "fast" as possible without being erratic.
//+------------------------------------------------------------------+
//| HMA.mq4 |
//| Copyright © 2004, MetaQuotes Software Corp. |
//| http://www.metaquotes.net/ |
//+------------------------------------------------------------------+
#property copyright "Copyright © 2004, MetaQuotes Software Corp."
#property link "http://www.metaquotes.net/"
//---- indicator settings
#property indicator_chart_window
#property indicator_buffers 1
#property indicator_color1 Yellow
//---- indicator parameters
extern int HMA_Period=4;
int MAshift=0;
//---- indicator buffers
double ind_buffer0[];
double ind_buffer1[];
int draw_begin0;
//+------------------------------------------------------------------+
//| Custom indicator initialization function |
//+------------------------------------------------------------------+
int init()
{
//---- indicator buffers mapping
IndicatorBuffers(2);
if(!SetIndexBuffer(0,ind_buffer0) && !SetIndexBuffer(1,ind_buffer1))
Print("cannot set indicator buffers!");
// ArraySetAsSeries(ind_buffer1,true);
//---- drawing settings
SetIndexStyle(0,DRAW_LINE);
draw_begin0=HMA_Period+MathFloor(MathSqrt(HMA_Period));
SetIndexDrawBegin(0,draw_begin0);
IndicatorDigits(MarketInfo(Symbol(),MODE_DIGITS)+1);
//---- name for DataWindow and indicator subwindow label
IndicatorShortName("HMA("+HMA_Period+")");
SetIndexLabel(0,"Hull Moving Average");
//---- initialization done
return(0);
}
//+------------------------------------------------------------------+
//| Moving Averages Convergence/Divergence |
//+------------------------------------------------------------------+
int start()
{
double ma1, ma2;
int limit,i, HMA_Period2, HMA_PeriodSQ2;
int counted_bars=IndicatorCounted();
//---- check for possible errors
if(counted_bars<1)
{
for(i=1;i<=draw_begin0;i++) ind_buffer0[Bars-i]=0;
for(i=1;i<=HMA_Period;i++) ind_buffer1[Bars-i]=0;
}
//---- last counted bar will be recounted
if(counted_bars>0) counted_bars--;
limit=Bars-counted_bars;
HMA_Period2 = MathFloor(HMA_Period/2);
HMA_PeriodSQ2 = MathFloor(MathSqrt(HMA_Period));
//---- MA difference counted in the 1-st buffer
for(i=0; i<limit; i++)
{
ma1 = iMA(NULL,0,HMA_Period2,MAshift,MODE_LWMA,PRICE_OPEN,i)*2;
ma2 = iMA(NULL,0,HMA_Period,MAshift,MODE_LWMA,PRICE_OPEN,i);
ind_buffer1[i]=ma1 - ma2;
}
//---- HMA counted in the 0-th buffer
for(i=limit -1 ; i>=0; i--)
ind_buffer0[i]=iMAOnArray(ind_buffer1,0,HMA_PeriodSQ2,0,MODE_LWMA,i);
//---- done
return(0);
}
//+------------------------------------------------------------------+
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