Description:
The Hilbert Transform Moving Average (HTMA) is a technical analysis tool designed to overcome the limitations of traditional moving averages. Unlike traditional moving averages that use fixed periods, the HTMA adjusts its smoothing period based on the volatility of the market. This allows it to be more responsive to sudden market changes, reducing lag and providing a more accurate representation of the underlying trend.
Input Parameters:
- Offset: The offset value is used to access the data of any candle or indicator concerning the current candle, to access the current candle data it will use the offset value of "0", to access previous candle data "-1" offset value will be used, access data of previous to previous "-2" will be used.
- Price Source: The specific data points (such as open, high, low, or close) from each candle in a financial chart that an indicator uses for mathematical computations, enabling the calculation of metrics like the average over a specified period.
Use Cases:
- Reduce Lag When Identifying Trend: Traditional moving averages are known for their lag because they are based on past price data. In contrast, HTMA takes into account both the current price and historical price movements, providing a smoother and more accurate representation of the trend in real-time.
- Provide Reliable Signals: Traditional moving averages are prone to generating false signals in choppy or sideways markets. However, HTMA is designed to filter out the noise and provide more accurate signals, making it particularly useful in volatile markets where sudden price changes can occur.
This feature can be used in:
- Market Scanner
- Strategy Tester
- Dynamic Alerts
- Multi-Factor Alerts
- Smart Checklist
Do you want to learn more? Check out our Learning Center Article.