There are various types of moving average lines (MA). The most famous is the simple moving average, but there are other exponential smoothing and weighted moving averages. Among such moving averages, the "HullMA" has the most distinctive feature. The advantage of the "HullMA" is that it enables unique trading depending on how you use it.
Alan Hull developed the HullMA (HMA). The purpose of this moving average is to reduce the lag, which is a weak point of most moving average indicators. Further, the "HullMA" reduces the noise of the trading signal. For this reason, the HMA provides more accurate trading signals. It is also very useful for swing traders.
1. It is a good idea to build a crossover system using a short-term HMA and a long-term HAM to create trading signals. The HMA is highly accurate, so you should be able to create a system with a high winning rate. Of course, it may also be combined with a standard simple moving average (SMA).
2. The HMA may be used for trend analysis as well. The HMA has less lag, so the trend judgment is more accurate.
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