The Hull Moving Average
) was developed by Alan Hull in 2005 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
). 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. I have integrated 4 HMA's into one which can be used for taking entry and exits similar to 4 EMA
strategies. All credit goes to Alan Hull for developing this technique.