OPEN-SOURCE SCRIPT
Updated HMA vs Candle True Cloud
HMA vs Candle – Trend Cloud Indicator (Brief Note)
This indicator compares price (candle source) with a long-period Hull Moving Average (HMA) to identify trend direction, momentum shifts, and regime changes.
The HMA, being momentum-sensitive, reacts to changes in price speed, while price itself represents real-time market action.
A dynamic two-way cloud is drawn between price and HMA:
Green cloud when price is above HMA → bullish dominance and accumulation
Red cloud when price is below HMA → bearish control and distribution
The width of the cloud reflects the strength of momentum:
Narrow cloud → compression / consolidation
Expanding cloud → impulse move or trend acceleration
This setup is especially effective on short timeframes with long HMA periods, where it filters noise while preserving early trend signals.
Overall, the indicator acts as a visual trend-momentum framework, highlighting early warnings, trend confirmation, and exhaustion zones in a single view.
This indicator compares price (candle source) with a long-period Hull Moving Average (HMA) to identify trend direction, momentum shifts, and regime changes.
The HMA, being momentum-sensitive, reacts to changes in price speed, while price itself represents real-time market action.
A dynamic two-way cloud is drawn between price and HMA:
Green cloud when price is above HMA → bullish dominance and accumulation
Red cloud when price is below HMA → bearish control and distribution
The width of the cloud reflects the strength of momentum:
Narrow cloud → compression / consolidation
Expanding cloud → impulse move or trend acceleration
This setup is especially effective on short timeframes with long HMA periods, where it filters noise while preserving early trend signals.
Overall, the indicator acts as a visual trend-momentum framework, highlighting early warnings, trend confirmation, and exhaustion zones in a single view.
Release Notes
I updated with color change as trend changesOpen-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.