The Hull Moving Average (HMA) is a trend-following indicator developed by Alan Hull in 2005. It aims to reduce the lag associated with traditional moving averages while providing a smoother depiction of price trends. The HMA is particularly useful for traders as it accurately captures the current price movement and momentum.
The HMA can be used as a standalone indicator or in combination with other indicators to confirm trading signals. It is commonly applied to identify the direction of the market trend, determine entry and exit points, and set stop-loss levels. Traders use the HMA to spot trends and make informed decisions quickly.