Hull Moving Average Direction-Change Semaphore Indicator

Summary

The document describes a semaphore-style technical indicator based on the Hull Moving Average (HMA). It marks moments when the difference between the HMA and its own averaging changes direction, offering a visual cue about a shift in the indicator’s movement. This is a description of a signal concept rather than a complete trading system: the text does not specify entry or exit rules, parameter choices, or how signals should be interpreted in different markets.

The indicator is implemented using classes from a separate smoothing-algorithm library, which must be available in the platform’s include folder. The document points to a related explanation of averaging price series during intermediate calculations and mentions an illustration, but supplies no test results, performance measures, or assessment of lag and false signals. Traders would need to define and evaluate their own rules before treating a direction change as actionable.

Key ideas

• The indicator tracks changes in direction of the difference between the Hull Moving Average and its averaging.
• It presents detected direction changes as semaphore signals.
• Its implementation depends on a separate smoothing-algorithm library.
• The description gives no trading rules or performance evidence for the signals.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.