Hull Moving Average Ribbon

Gradient Wave HMA - Multi-Ribbon Hull Moving Average System

Overview

The Gradient Wave HMA is an advanced technical indicator that transforms Alan Hull's Hull Moving Average (HMA) into a dynamic multi-layered ribbon system. Unlike traditional moving average ribbons that use simple or exponential calculations, this indicator applies Hull's innovative lag-reduction formula across 12 different timeframes simultaneously, creating a visually striking gradient effect that flows with market momentum.

Technical Foundation

This indicator is built upon the Hull Moving Average, developed by Alan Hull in 2005. The HMA uses a weighted moving average calculation designed to almost eliminate lag while maintaining curve smoothness:

HMA = WMA(2*WMA(n/2) − WMA(n), sqrt(n))

Credit: Alan Hull (alanhull.com)

Key Features

Multi-Period Ribbon Structure

12 individual HMA lines with customizable periods

Preset configurations for different trading styles:

Fast: 3-30 period range (scalping/intraday)
Swing: 8-55 period range (swing trading)
Position: 20-100 period range (position trading)
Custom: User-defined periods



2. Neon Gradient Visualization

Bullish Gradient: Transitions from blue-purple to hot purple
Bearish Gradient: Flows from hot pink to purple-pink
Each line has a unique color in the spectrum
Gradient fills between lines create depth and visual flow

3. Advanced Alert System

Trend Reversal Alerts: Notifies when ribbon changes direction
Price Breakout Alerts: Triggers when price crosses the ribbon
Compression Alerts: Signals potential breakouts during consolidation
Expansion Alerts: Confirms strong trending conditions
Momentum Surge Alerts: Catches explosive moves early

How It Works

The indicator calculates 12 Hull Moving Averages, each with a different period length. The trend direction is determined by the middle HMA (6th line), which triggers the color change across the entire ribbon. When trending up, the ribbon displays a purple gradient; when trending down, it shifts to a pink gradient.

Trading Applications

1. Trend Identification

Ribbon color indicates overall trend direction
All lines moving in sync confirms strong trend
Mixed signals suggest choppy or transitioning markets

2. Dynamic Support/Resistance

In uptrends, the ribbon acts as moving support
In downtrends, it provides resistance levels
Multiple layers offer various strength levels

3. Momentum Analysis

Expanding ribbon = Increasing momentum
Contracting ribbon = Decreasing momentum/consolidation
Ribbon angle indicates trend strength

4. Trading Example



Advantages Over Traditional MAs

Reduced Lag: Hull's formula provides faster response than SMA/EMA ribbons
Visual Clarity: Gradient effect makes trend changes immediately visible
Multiple Timeframes: 12 periods provide comprehensive market view
Flexibility: Presets adapt to different trading styles

Best Practices

Use higher timeframes (4H, Daily) for position trading
Combine with volume indicators for confirmation
Watch for ribbon compression before major moves
Consider overall market conditions when interpreting signals

Customization Options

Adjust individual HMA periods
Fine-tune transparency for different backgrounds
Choose between WMA and EMA base calculations


The Gradient Wave HMA combines Alan Hull's breakthrough moving average formula with modern visualization techniques to create a powerful trend-following tool that's both technically sophisticated and visually intuitive.