How to Become a Successful Forex Trader with Hull Moving Average Trading System

Forex Trading Advices and Tips – How to Become a Successful Forex Trader with Hull Moving Average Trading System. Statistics show that for new forex traders, profitable trading is hard to achieve. Improve your chances of success by studying currency trading tips and rules with Hull Moving Average Trading System.

 
Moving averages are often the best way to eliminate data spikes, and those of relatively long lengths smooth data as well. However, moving averages have a major flaw, in that their long lookback periods introduce lag. The solution is to modify the moving average formula and remove the lag.
 
Doing so minimizes the possibility of the moving average overshooting the raw data when predicting the next interval’s activity and thus introducing errors.
 
The Hull Moving Average (HMA), developed by Alan Hull, is an extremely fast and smooth moving average. In fact, the HMA almost eliminates lag altogether and manages to improve smoothing at the same time.

 

How Hull Moving Average (HMA) works

A longer period HMA may be used to identify trend. If the HMA is rising, the prevailing trend is rising, indicating it may be better to enter long positions. If the HMA is falling, the prevailing trend is also falling, indicating it may be better to enter short positions.
 
A shorter period HMA may be used for entry signals in the direction of the prevailing trend. A long entry signal, when the prevailing trend is rising, occurs when the HMA turns up and a short entry signal, when the prevailing trend is falling, occurs when the HMA turns down.

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Hull Moving Average Trading Rules

 

Before you enter any market as a trader, you need to have some idea of how you will make decisions to execute your trades. You must know what information you will need in order to make the appropriate decision about whether to enter or exit a trade. And now, let’s go to the rules…

 

BUY Rule
  • Hull Moving Average blue and upward
  • Yellow line Triangulat Moving Average (7) above Hull Moving Average
  • Bulish candle close above yellow line Triangulat Moving Average (7)
  • RSI Filter blue
  • ADX blue line upward above 30 line

 

SELL Rule
  • Hull Moving Average red and downward
  • Yellow line Triangulat Moving Average (7) below Hull Moving Average
  • Bearish candle close below yellow line Triangulat Moving Average (7)
  • RSI Filter red
  • ADX blue line upward above 30 line

 

TRADER NOTE :

How to Become a Successful Forex Trader…

  • Developing a trading mindset rather than a gambling mindset. One of the worst things that you can do as a trader is to let your trade run rather than closing it out when it begins to go against you. A trader would accept that a trade is unsuccessful and accept their loss while a gambler would let the trade continue to run in the hope that it will eventually reverse itself in the trader’s favor.
  • Learning patience. It takes time to learn how to trade successfully and the trader should accept this rather than believe that after only a few courses, they will be successful at once. Apart from the lessons they will learn from the Forex school, they will also have to spend hours of practice making paper trades before they go and make actual money trades. It is said that it takes 10,000 hours to become proficient at something, and you will have to put in the time required to develop into a successful trader since it will not happen overnight.
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And.. Whichever forex trading system and methodology you choose, remember to be consistent. And be sure your methodology is adaptive.


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