OPEN-SOURCE SCRIPT
Hull MA Dynamic Ribbon [LB]
Hello friend!
Hull MA Dynamic Ribbon
The Hull MA Dynamic Ribbon is a high-performance trend-following tool designed to filter market noise while eliminating the lag found in traditional moving average clouds. By stacking 15 individual Hull Moving Averages, it creates a visual "wave" that tracks price action with surgical precision.
The Problem It Solves
1. The Lag Trap: Standard moving averages (SMA/EMA) often give signals too late. The Hull MA solves this by using a weighted calculation that keeps the indicator "glued" to the current price.
2. False Breakouts: A single line can be misleading. This ribbon uses a volumetric approach; when the ribbon is wide and fanned out, the trend is strong. When it collapses or twists, it warns you of a consolidation or an imminent reversal.
Mathematical Logic & Calculation
The indicator is based on the Hull Moving Average formula, which is calculated as follows:
HMA = WMA(2 * WMA(n/2) - WMA(n), sqrt(n))
The ribbon specifically calculates 15 iterations of this formula:
The fastest line starts at a Base Length (default 20).
Each subsequent line adds a Step (default 10) to the period, reaching up to a Slow Length of 160.
Dynamic Coloring: The script monitors the relationship between the first and last HMA. If HMA(20) > HMA(160), the ribbon turns Green (Bullish). If HMA(20) < HMA(160), it turns Red (Bearish).
Application in Trading
Trend Strength: Look for the "expansion" of the ribbon. A thick ribbon confirms a healthy trend.
Support/Resistance: The ribbon itself acts as a dynamic zone where price often retraces before continuing its move.
The Flip: The color change provides an immediate visual cue for a shift in market sentiment, allowing for faster entries and exits than standard crossover systems.
Hull MA Dynamic Ribbon
The Hull MA Dynamic Ribbon is a high-performance trend-following tool designed to filter market noise while eliminating the lag found in traditional moving average clouds. By stacking 15 individual Hull Moving Averages, it creates a visual "wave" that tracks price action with surgical precision.
The Problem It Solves
1. The Lag Trap: Standard moving averages (SMA/EMA) often give signals too late. The Hull MA solves this by using a weighted calculation that keeps the indicator "glued" to the current price.
2. False Breakouts: A single line can be misleading. This ribbon uses a volumetric approach; when the ribbon is wide and fanned out, the trend is strong. When it collapses or twists, it warns you of a consolidation or an imminent reversal.
Mathematical Logic & Calculation
The indicator is based on the Hull Moving Average formula, which is calculated as follows:
HMA = WMA(2 * WMA(n/2) - WMA(n), sqrt(n))
The ribbon specifically calculates 15 iterations of this formula:
The fastest line starts at a Base Length (default 20).
Each subsequent line adds a Step (default 10) to the period, reaching up to a Slow Length of 160.
Dynamic Coloring: The script monitors the relationship between the first and last HMA. If HMA(20) > HMA(160), the ribbon turns Green (Bullish). If HMA(20) < HMA(160), it turns Red (Bearish).
Application in Trading
Trend Strength: Look for the "expansion" of the ribbon. A thick ribbon confirms a healthy trend.
Support/Resistance: The ribbon itself acts as a dynamic zone where price often retraces before continuing its move.
The Flip: The color change provides an immediate visual cue for a shift in market sentiment, allowing for faster entries and exits than standard crossover systems.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.