Hull Moving Average Bollinger Bands – HMABB

Works in SQX 137 and higher.

Hull Moving Average (HMA) Bollinger Bands is a technical analysis indicator that combines the concepts of Hull Moving Average (HMA) and Bollinger Bands to create dynamic support and resistance levels, or “bands,” around the HMA line. This indicator helps traders gauge the volatility and price action around the HMA, providing additional insights for potential trade setups.

Here’s a brief explanation of the two components:

1. Hull Moving Average (HMA): The Hull Moving Average, developed by Alan Hull, is a fast and smooth moving average designed to reduce lag and improve responsiveness compared to traditional moving averages. The HMA is calculated by taking the weighted moving average (WMA) of the midpoint (half of the period) and subtracting the WMA of the full period. Then, a WMA of the square root of the period is taken from the result. This calculation reduces lag and provides a more responsive moving average line.
2. Bollinger Bands: Bollinger Bands is a volatility indicator developed by John Bollinger that consists of three lines: a simple moving average (middle band) and two standard deviations above (upper band) and below (lower band) the moving average. The bands widen or narrow based on the volatility of the security’s price, with higher volatility leading to wider bands and lower volatility leading to narrower bands.

To create HMA Bollinger Bands, you would first calculate the HMA line and then apply the Bollinger Bands methodology using the HMA as the middle line (instead of the simple moving average). This means calculating the standard deviation of the price based on a specific period and then adding or subtracting a multiple of the standard deviation (typically two) from the HMA to form the upper and lower bands.

HMA Bollinger Bands can be used in various ways, such as identifying potential entry and exit points, setting stop-loss and take-profit levels, and evaluating the strength of trends. They can also be used to determine whether the price is relatively high or low compared to the HMA. Keep in mind, though, that like any technical indicator, HMA Bollinger Bands should be used in conjunction with other tools and analysis techniques to improve trading decisions.

The indicator has these parameters

• ComputedFrom – Type of price series
• Period –  Lookback Period of HMA

Indicator is implemented for: MT4/MT5/Tradestation/ Multicharts

You can easily do your conditions in Custom blocks. More information you can find here:

• https://strategyquant.com/doc/strategyquant/custom-blocks/
• https://strategyquant.com/doc-category/strategy-templates-custom-blocks/
• https://www.youtube.com/watch?v=CGkn5kh_etc

In this module, you can also modify the custom blocks – change the periods, change the steps, etc.

How to import custom indicators to SQX:

• https://strategyquant.com/doc/programming-for-sq/import-export-custom-indicators-and-other-snippets/