Hull Moving Average (EMA Based) indicator is a powerful VertexFX Client side indicator which gives fast and smooth moving average that almost eliminates the lag associated with moving averages (MA). The major disadvantage with traditional moving averages is the inherent lag associated with them. HMA reduces the lag with common moving averages like Simple MA.
When the script is attached to the chart in first step it calculates the Weighted Moving Average (WMA) for half period value which is predefined in Inperiod parameter. In Second Step it calculate WMA for full Inperiod value. In next step it subtract the full period WMA from half period WMA multiplied by two. Later it calculate the square root of the full Inperiod and calculate WMA with square root of Inperiod which it has calculated in previous step.
Like moving averages HMA is used to identify the trend direction. The direction of the HMA line shows the trend direction. It generally gets plotted in two different color i.e. Red and Green. When the HMA line Start rising it is indicated by Green Color which indicate that the current trend is up and when the HMA line is falling trend is down its represented by Red color. Also price trading above the HMA indicates uptrend and price trading below HMA line indicates down trend. Slope of the HMA line shows the strength of the trend.
A buy signal is generated when the HMA gets green from Red and a stop loss can be placed at the swing low whereas a Sell signal is generated when the HMA turns red from Green and a stop loss can be placed at swing high.
The indicator also has a special feature which allow to apply like CLOSE, OPEN , HIGH, LOW prices to HMA. This feature can be controlled by a configuration parameter InpPrice. The indicator also have a InpDivisor parameter which can be helpful for further filtering out signals without changing the Hull period
Configurable parameters :
1.InpPeriod : The length for which the HMA is being calculated.
2.InpDivisor : The speed on which the changing between trends is made.
3.InpPrice: The price to which is applied , like CLOSE, OPEN , HIGH, LOW, and so on.
https://www.hybridsolutions.com/plugins/client-vtl-plugins/free/hull-moving-average.html
