#616
by amdudus
The final version still requires work on indicators and does not have a name. But, I think, we will manage in a week or two.
Particular attention is paid to the Hull Moving Average (HMA)
Let me remind you that the Hull Moving Average Indicator (HMA) is the moving average of the Hala. The author is an Australian trader, mathematician, financier, analyst Alan Hull.
According to Alan himself, he worked on a completely different indicator when he became interested in the problem of the lag of the moving average from the price, as a result of which this indicator appeared (in 2005). The calculation formula is as follows:
HMA (n) = WMA (2 * WMA (n / 2)  WMA (n)), sqrt (n))
In order to understand how price delays are eliminated in HMA, let's look at an example like this: (0 + 1 + 2 + 3 + 4 + 5 + 6 + 7 + 8 + 9) /10=4.5; As a result, the average value is 4.5  which is quite far from the last price value (9). And in practice, we will see a rather strong lag of the indicator from the candles on the chart.
Alan Hull proposed reducing the gap in this way: (5 + 6 + 7 + 8 + 9) / 5 = 7, which is much closer to the current price (7 is much closer to 9 than 4.5 to 9).
Then Alan added to the number the difference between the two averages (74.5 = 2.5) and as a result received (7 + 2.5 = 9.5) 9.5  even a little more than the current price 9  a very good balance was obtained between lag and smoothing.
The problem of lagging movings from the price was practically eliminated. Compared to a regular SMA (14), HMA gives a possible input signal much earlier, and also changes color for upward and downward trends  which can be convenient compared to a regular indicator.


