Traditional moving averages have a well-known weakness: they lag behind price. By the time a standard MA confirms a trend shift, the move is already well underway and you’ve left pips on the table. Australian mathematician Alan Hull recognized this problem and, in 2005, created the Hull Moving Average – a formula specifically engineered to eliminate lag while keeping the line smooth. The result is an indicator that reacts to trend changes significantly faster than the EMA, without the choppy noise you’d get by simply shortening the period on a conventional average.
The HMA isn’t built into MetaTrader 4, which means most traders never discover it. That’s a missed opportunity. In this review, we’ll cover exactly how the hull moving average mt4 indicator works, the best settings for different trading styles, and a practical color-change entry strategy you can put to work immediately.
What is the Hull Moving Average?
The Hull Moving Average is a trend-following indicator that uses a combination of Weighted Moving Averages (WMAs) arranged in a specific mathematical structure to dramatically reduce lag. Alan Hull published the formula in 2005, and it quickly gained a following among traders frustrated by the delayed signals from SMAs and EMAs.
The HMA formula works in three stages:
- Calculate a WMA with a period of n/2, then multiply its value by 2
- Calculate a WMA with the full period n, and subtract it from the result above
- Take the square root of n, and apply a final WMA of that length to the difference
Written as a formula: HMA = WMA(2 x WMA(n/2) – WMA(n)), sqrt(n)
This nested approach is what gives the HMA its speed advantage. By computing the difference between a half-period WMA and a full-period WMA, the formula essentially “predicts” where the average should be – then smooths that prediction with the final square-root WMA. The result is a line that turns almost in real time when price direction changes, yet stays remarkably smooth during sustained trends.
Unlike the standard Moving Average Indicator MT4 which is built into the platform, the HMA requires a custom indicator file because MetaTrader 4 doesn’t include it natively. That’s why you need to download and install it separately.
How the Hull Moving Average Works on MT4
Once installed, the HMA appears as a color-coded line on your chart. Most versions display it in two colors – one for bullish conditions (line rising) and another for bearish conditions (line falling). This color change is the primary signal the indicator generates.
The most striking thing you’ll notice compared to a standard EMA is how closely the HMA tracks price. During a trend, the line hugs the candles much more tightly. When the trend reverses, the HMA changes direction and color noticeably earlier than an EMA of the same period.
The color transitions serve as actionable signals. When the line shifts from bearish (typically red) to bullish (green or blue), it indicates the start of a potential uptrend. The opposite color change signals bearish momentum. These transitions tend to occur one to three candles earlier than an equivalent EMA crossover – which translates directly into better entry prices.
The HMA also works as dynamic support and resistance. During uptrends, price tends to bounce off the HMA line on pullbacks. During downtrends, rallies frequently stall at the line. This makes it useful for both entry timing and stop loss placement.
Key Features
- Non-repainting: Once a candle closes, the HMA value is locked in permanently
- Color-coded direction changes provide clear visual buy/sell signals
- Dramatically reduced lag compared to SMA and EMA of the same period
- Smoother output than a short-period EMA, reducing false signals in choppy markets
- Works on every timeframe from M1 to monthly
- Lightweight custom indicator – minimal impact on MT4 performance
- Period setting is highly responsive – small changes produce noticeable differences
Best Settings for Hull Moving Average
The HMA is more responsive than conventional MAs, so the period numbers are lower than what you’d use with an EMA or SMA. Here are tested settings:
| Parameter | Scalping (M1-M5) | Day Trading (M15-H1) | Swing Trading (H4-D1) |
|---|---|---|---|
| HMA Period | 9 | 16 | 49 |
| Applied Price | Close | Close | Close |
| Best Pairs | EUR/USD, GBP/USD | EUR/USD, USD/JPY, GBP/USD | Any major pair |
| Signal | Color change | Color change + angle | Color change + daily bias |
Period 9 reacts extremely fast, making it suitable for scalping on the M1 or M5. Expect quick signals but be prepared to filter with additional confirmation on lower timeframes.
Period 16 is the sweet spot for most day traders. On M15 to H1 charts, it catches trend changes early without generating excessive whipsaws. This is where the HMA truly outperforms the EMA Indicator MT4.
Period 49 smooths out the daily and H4 noise and captures meaningful swing moves. It aligns well with weekly trend direction and works as a powerful trend filter for longer-term positions.
Recommended starting point: Begin with HMA period 16 on the H1 chart. Observe how the color changes align with actual trend shifts on your preferred pairs before moving to shorter periods.
HMA vs EMA: Speed vs Reliability
This is the comparison most traders want to see. Both are “fast” moving averages, but they achieve speed differently:
| Feature | Hull Moving Average (HMA) | Exponential Moving Average (EMA) |
|---|---|---|
| Lag | Minimal – turns almost with price | Moderate – still trails price by several candles |
| Smoothness | Very smooth despite speed | Can be noisy at short periods |
| Built into MT4 | No – requires custom indicator | Yes – available by default |
| Institutional Use | Limited – less widely followed | Extensive – 20/50/200 EMAs watched globally |
| False Signals | Fewer in trends, can over-react in chop | More consistent but slower to react |
| Best For | Early trend detection, active traders | Broad trend following, confirmation |
The practical takeaway: the HMA gives you earlier entries, which means better risk-to-reward ratios when the signal is correct. However, because fewer traders and institutions watch HMA levels compared to the 20 or 50 EMA, you won’t get the same “self-fulfilling prophecy” support and resistance effect. The solution is to use both – the HMA for entry timing and a standard EMA (like the 50 or 200) for structural context.
Pros and Cons
| Pros | Cons |
|---|---|
| Fastest trend detection of any moving average variant | Not built into MT4 – requires installing a custom indicator file |
| Smooth output reduces false signals compared to short-period EMAs | Can generate premature signals during volatile news events |
| Color-coded direction makes interpretation instant | Less widely followed than EMA/SMA, so HMA levels don’t act as strong S/R |
| Non-repainting – reliable for backtesting and strategy development | Slightly more complex to understand than a basic SMA or EMA |
How to Install Hull Moving Average on MT4
Since the HMA is not a default MT4 indicator, you need to install it as a custom indicator. The process takes about two minutes.
Step 1: Download the Hull Moving Average .ex4 file using the download form on this page.
Step 2: Open your MT4 terminal. Click File > Open Data Folder in the top menu. This opens the MT4 directory on your computer.
Step 3: Navigate to MQL4 > Indicators and paste the downloaded .ex4 file into this folder.
Step 4: Restart your MT4 platform, or right-click in the Navigator panel (left side) and click Refresh. You should now see “Hull Moving Average” listed under Custom Indicators.
Step 5: Drag the indicator from the Navigator panel onto your chart. In the settings window, set your preferred period (16 is a solid default) and click OK. The color-coded HMA line will appear on your chart.
Tip: If the indicator doesn’t appear after refreshing, make sure the file extension is .ex4 (not .mq4). If you have the .mq4 source file, you’ll need to compile it first using MetaEditor.
For a detailed walkthrough, see our guide on How to Install Custom Indicators on MT4.
Trading Strategy: HMA Color Change with ATR Stop Loss
This strategy leverages the HMA’s greatest strength – its fast color transitions – and pairs it with the ATR (Average True Range) indicator for intelligent stop loss placement. It works best on the H1 and H4 timeframes.
Setup: Apply Hull Moving Average (period 16) and ATR (period 14) to your chart.
Buy Signal:
1. HMA line changes color from bearish (red) to bullish (green/blue)
2. The current candle closes above the HMA line
3. Confirm: the HMA line angle is sloping upward, not flat
4. Enter long at the close of the confirmation candle
Sell Signal:
1. HMA line changes color from bullish (green/blue) to bearish (red)
2. The current candle closes below the HMA line
3. Confirm: the HMA line angle is sloping downward, not flat
4. Enter short at the close of the confirmation candle
Stop Loss: Place the stop loss at 1.5x the current ATR value away from your entry price. For example, if ATR(14) reads 0.0025 on EUR/USD H1, your stop goes 37.5 pips from entry. This adapts automatically to current market volatility – tighter stops in calm markets, wider stops during volatile sessions.
Take Profit: Target a minimum 1:2 risk-reward ratio. If your ATR-based stop is 37 pips, your take profit should be at least 74 pips. Alternatively, trail your stop and exit when the HMA changes color against your position.
Why this works: The HMA catches trend shifts early, giving you entries near the start of the move rather than midway through. The ATR stop prevents you from being stopped out by normal market noise while still keeping risk controlled. Together, they create a system that adapts to whatever volatility the market throws at you.
Pairs to avoid with this strategy: Stay away from exotic pairs and low-liquidity sessions (Asian session for EUR/USD). Stick to major pairs during London and New York sessions for the cleanest signals.
Frequently Asked Questions
Is the Hull Moving Average indicator free for MT4?
Yes. The HMA indicator we provide on this page is completely free to download and use. Since the Hull Moving Average is not built into MT4 by default, you need to install it as a custom indicator – but the file itself costs nothing.
Does the Hull Moving Average indicator repaint?
No. Once a candle closes, the HMA value for that bar is fixed permanently. The line may adjust on the current unclosed candle as live price data comes in, but that’s standard behavior for any indicator – not repainting. Closed bars never change.
What is the best HMA period setting for day trading?
A period of 16 works well for day trading on M15 to H1 timeframes. It strikes an effective balance between responsiveness and signal quality. For scalping on M1-M5, drop to period 9. For swing trading on H4 or daily charts, use period 49.
Is the Hull Moving Average better than the EMA?
It depends on your priorities. The HMA is undeniably faster and smoother, which means earlier entries and less noise. However, the EMA (particularly the 20, 50, and 200 periods) is far more widely followed by institutional traders and algorithms, making EMA levels more significant as support and resistance. Many experienced traders use the HMA for entry timing alongside a standard EMA for structural bias.
Can I use the Hull Moving Average on MT5?
Yes, but you’ll need a separate MT5 version. The .ex4 file provided here works only on MT4. MT5 uses .ex5 indicator files. HMA versions for MT5 are available through the MQL5 community marketplace.
Download Hull Moving Average Indicator for MT4 – Free
Our HMA indicator includes features you won’t find in basic versions:
- Color-coded trend direction – instant visual identification of bullish and bearish conditions
- Configurable alerts – popup, email, and push notifications on color changes
- Multi-period display – overlay two HMA periods on one chart for crossover setups
- Clean, optimized code – minimal CPU usage even on multiple charts
Platform: MT4 (Build 1000+)
File type: .ex4
File size: 8 KB
Version: 1.2
Last updated: April 2026
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Overall Rating: 4.6/5
| Category | Rating |
|---|---|
| Accuracy | 4.5/5 |
| Ease of Use | 4.4/5 |
| Features | 4.7/5 |
| Value | 4.9/5 |
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