A custom oscillator combining Hull Moving Average and Z-Score to detect momentum shifts and potential trend reversals by measuring price deviation from historical mean.
Explore complementary indicator rolesHow it works
The Hull Moving Average (HMA) creates a responsive trend-following line that adjusts quickly to price changes by minimizing lag. The Z-Score calculates how many standard deviations the current HMA is from its historical mean, providing insight into potential overbought or oversold conditions.
When the Z-Score crosses above a predefined long threshold, it signals bullish momentum, indicating a potential uptrend. Conversely, when the Z-Score drops below a short threshold, it suggests bearish momentum and a potential downtrend, offering traders clear entry and exit signals.
Why it may be useful
This indicator helps traders identify momentum shifts more accurately by combining trend-following and statistical deviation analysis. By measuring how far the current price is from its historical average, traders can detect potential trend reversals before they become obvious to the broader market.
The visual representation with color-coded backgrounds and fills makes it easier to quickly interpret market conditions, reducing the cognitive load of analyzing complex price movements. This approach allows traders to make more informed decisions about potential entry and exit points.
When to explore it
The oscillator works best in markets with clear trending characteristics, such as forex, futures, and liquid stocks with consistent price movements. It is particularly effective during periods of moderate volatility where momentum changes are more predictable and measurable.
Traders should use this indicator in conjunction with other technical analysis tools to confirm signals and reduce false positives. It is most reliable when applied to timeframes ranging from 5-minute charts for day trading to daily charts for swing trading.
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What we’ve verified
Access, alerts and repainting behaviour have not been independently verified for this indicator. Check the creator’s current publication and settings.
General descriptions and classifications are recovered research. Verified details above identify the specific checks we have completed. Check the creator’s current publication for later changes.
