UT Bot + Hull MA Confirmed Signal Delay

Overview

This indicator is designed to detect high-probability reversal entry signals by combining "UT Bot Alerts" (UT Bot Alerts script adapted from QuantNomad [1] - Originally developed by Yo_adriiiiaan [2] and idea of original code for "UT Bot Alerts" from HPotter [3]) with confirmation from a Hull Moving Average (HMA) Developed by Alan Hull [4]. It focuses on capturing momentum shifts that often precede trend reversals, helping traders identify potential entry points while filtering out false signals.

🔍 How It Works
This strategy operates in two stages:

1. UT Bot Momentum Trigger
The foundation of this script is the "UT Bot Alerts" [1-3], which uses an ATR-based trailing stop to detect momentum changes. Specifically:

The script calculates a dynamic stop level based on the Average True Range (ATR) multiplied by a user-defined sensitivity factor (Key Value).

When price closes above this trailing stop and the short-term EMA crosses above the stop, a potential buy setup is triggered.

Conversely, when price closes below the trailing stop and the short-term EMA crosses below, a potential sell setup is triggered.

These UT Bot alerts are designed to identify the initial shift in market direction, acting as the first filter in the signal process.

2. Hull MA Confirmation
To reduce noise and false triggers from the UT Bot alone, this script delays the entry signal until price confirms the move by crossing the Hull Moving Average (or its variants: HMA, THMA, EHMA) in the same direction as the UT Bot trigger:

A Buy Signal is generated only when:

A UT Bot Buy condition is active, and

The price closes above the Hull MA.

Or, if a UT Bot Buy condition was recently triggered but price hadn’t yet crossed above the Hull MA, a delayed buy is signaled when price finally breaks above it.

A Sell Signal is generated only when:

A UT Bot Sell condition is active, and

The price closes below the Hull MA.

Similarly, a delayed sell signal can occur if price breaks below the Hull MA shortly after a UT Bot Sell trigger.

This dual-confirmation process helps traders avoid premature entries and improves the reliability of reversal signals.

📈 Best Use Cases
Reversal Trading: This strategy is particularly well-suited for catching early trend reversals rather than trend continuations. It excels at identifying momentum pivots that occur after pullbacks or exhaustion moves.

Heikin Ashi Charts Recommended: The script offers a Heikin Ashi mode for smoothing out noise and enhancing visual clarity. Using Heikin Ashi candles can further reduce whipsaws and highlight cleaner shifts in trend direction.

MACD Alignment: For best results, trade in the direction of the MACD trend or use it as a filter to avoid counter-trend trades.

⚠️ Important Notes
Entry Signals Only: This indicator only plots entry points (Buy and Sell signals). It does not define exit strategies, so users should manage trades manually using trailing stops, profit targets, or other exit indicators.

No Signal = No Confirmation: You may see a UT Bot trigger without a corresponding Buy/Sell signal. This means the price did not confirm the move by crossing the Hull MA, and therefore the setup was considered too weak or incomplete.

⚙️ Customization
UT Bot Sensitivity: Adjust the “Key Value” and “ATR Period” to make the UT Bot more or less reactive to price action.

Use Heikin Ashi: Toggle between standard candles or Heikin Ashi in the indicator settings for a smoother trading experience.

The HMA length may also be modified in the indicator settings from its standard 55 length to increase or decrease the sensitivity of signal.

This strategy is best used by traders looking for a structured, logic-based way to enter early into reversals with added confirmation to reduce risk. By combining two independent systems—momentum detection (UT Bot) and trend confirmation (Hull MA)—it aims to provide high-confidence entries without overwhelming complexity.

Let the indicator guide your entries—you manage the exits.

Examples of use:

Futures:


Stock:


Crypto:


As shown in the snapshots this strategy, like most, works the best when price action has a sizeable ATR and works the least when price is choppy. Therefore it is always best to use this system when price is coming off known support or resistance levels and when it is seen to respect short term EMA's like the 9 or 15.

My personal preference to use this system is for day trading on a 3 or 5 minute chart. But it is valid for all timeframes and simply marks a high probability for a new trend to form.

Sources:
[1] Quant Nomad - tradingview.com/u/QuantNomad/

[2] Yo_adriiiiaan - tradingview.com/u/Yo_adriiiiaan/

[3] HPotter - tradingview.com/u/HPotter/

[4] Hull Moving Average - alanhull.com/hull-moving-average