Alan Hull developed Hull Moving Average in 2005 in his quest to create a moving average that is "responsive to current price activity while maintaining curve smoothness". Hull claims that his moving average "almost eliminates lag altogether and manages to improve smoothing at the same time".
If the HMA is rising, the prevailing trend is rising, indicating it may be better to enter long positions. If the HMA is falling, the prevailing trend is also falling, indicating it may be better to enter short positions. Like any other moving average, if the HMA is rising along with price, it indicates an uptrend. Conversely, if the HMA is falling along with price, it indicates a downtrend. Traders can take a long position if prices are rising and the HMA is trending upwards. However, traders can take a short position, if the prevailing trend is falling.
The annotation of the graph will show red if the prevailing market trend is down and green if the prevailing market trend is up.
Other graphs can be made on request. Please don't forget to like and share if you found this useful.