The Hull Moving Average (HMA) was developed by Alan Hull for the purpose of reducing lag, increasing responsiveness while at the same time eliminating noise. Its calculation is elaborate and makes use of the Weighted Moving Average (WMA)
. It emphasizes recent prices over older ones, resulting in a fast-acting yet smooth moving average that can be used to identify the prevailing market trend. It can also be used for entry and exit signals. The indicator is mostly used by swing traders and by long term traders in combination with other signals and analysis techniques.