HMA Volume

HMA Volume applies the Hull Moving Average (HMA) algorithm to volume data instead of price. This produces a smooth, responsive volume trend line that reduces lag compared to standard volume moving averages (SMA, EMA of volume).

The Hull Moving Average was developed by Alan Hull to address the lag problem inherent in traditional moving averages. When applied to volume, it provides a clearer picture of volume trends and helps identify shifts in buying/selling pressure earlier than conventional methods.

The HMA formula applied to volume:

HMA(volume, N) = WMA(2 * WMA(volume, N/2) - WMA(volume, N), sqrt(N))

Where WMA is the Weighted Moving Average, which gives more weight to recent data.

The three-step process:

1. Calculate WMA of volume with period N/2
2. Calculate WMA of volume with period N
3. Calculate WMA of (2 * step1 - step2) with period sqrt(N)

This double-smoothing technique removes noise while maintaining responsiveness.

| Parameter | Default | Description | |-----------|---------|-------------| | Period | 14 | Lookback period for the HMA calculation |

| Period | Use case | |--------|----------| | 7 | Short-term volume trend (sensitive, good for scalping) | | 14 | Standard volume trend (balanced) | | 21 | Medium-term volume trend | | 28 | Longer-term volume baseline |

| Condition | Meaning | |-----------|---------| | HMA_VOLUME(14) > HMA_VOLUME(28) | Short-term volume trend above long-term — rising volume | | HMA_VOLUME(7) cross_over HMA_VOLUME(21) | Fast volume HMA crosses above slow — volume acceleration | | HMA_VOLUME(14) cross_under HMA_VOLUME(28) | Volume trend weakening — declining participation | | volume > HMA_VOLUME(14) | Current volume exceeds its smoothed average — above-average activity |

• HMA Volume is smoother than SMA/EMA of volume, reducing false signals from volume spikes
• Use HMA Volume crossovers (fast vs. slow period) to detect volume trend changes
• Rising HMA Volume during a price trend confirms trend strength
• Declining HMA Volume during a price trend warns of potential reversal or consolidation
• Compare current volume to HMA Volume as a volume filter: only enter trades when volume > HMA_VOLUME
• HMA Volume works well as a confirmation tool alongside price-based indicators
• Shorter HMA periods react faster to volume changes but produce more noise
• For crypto markets, HMA Volume is particularly useful as volume patterns tend to be noisier than equities