Hull Moving Average Indicator Explained -- with David Moadel
hello friends and welcome to looking at the markets with David Modell take a
look at these two lines you've got a purple line there and you've got an
orange line which one would you rather use if you have a choice which moving
average would you want to use that orange one which doesn't even come close
to the candles and it's just kind of just wandering going no we're not
showing you much of anything that you can use or would you rather use that
purple one that hugs the candles a little closer but not too closely it's
not right on top of it all the time I think that purple one's a lot better at
least I think so hey this is David Modell looking at the markets we're
going to get into the hull moving average indicator we're just going to
keep it really basic and really quick just to give you a taste of flavor of
what this indicator is all about and by the way if you don't have a trading or
investing plan I do offer coaching about indicators or investing trading whatever
you like so my name is David Modell you can email me at David Modell at
gmail.com if you're interested in the coaching and I can help answer your
questions with that and also by the way below this video there are links to
seven different free financial reports very actionable very usable no junk
we're not going to spam you so if you're interested in those go in the
description below the video and you can download one or as many as you like all
right so let's get into the hall a moving average I'm on trading view
dot-com I did not at least today while making this video I did not find this
indicator in a whole lot of places I did not find it on stockcharts.com at least
the free version I did not find it on bar charts com at least the free version
I did find it on trading Viacom so I want to give them a little bit of credit
for that but let's go into the basics of it the whole moving average invented by
Allen Hall in 2005 so it's one of the more recent one
now traditional moving averages you know your EMA your SMA have a tendency to lag
or far fall far behind the price action of the candlesticks the whole moving
average is designed to help reduce that lag because it uses a weighted moving
average or WMA the haul moving average emphasizes recent prices or candlesticks
over older ones kind of like the EMA does and here's the formula which you
don't have to know if you don't know what all this stuff means that's cool
okay you don't necessarily have to understand every single formula of every
indicator that you use it's fine as long as you know how to use it and it's used
the whole moving average is used a lot like traditional moving averages pretty
much as at least for me maybe there are different ways to use it but I found
that it's pretty similar in the way that I use it to identify the trend of the
price action alright so let's take a look back on trading view hey so if this
orange line here is the simple moving average 25 period simple moving average
and this is the 1-minute candlestick chart for Apple by the way and so I'm
looking at an intraday trading type of timeframe but we could look at the daily
candlestick chart too for swing traders alright so if the orange line is just
your regular simple moving average or let's say let's hide everything except
for yeah so this is just a regular old simple moving average gain nothing wrong
with that but it's got some ads coming up here it doesn't seem to too useful
all right I mean you know it's just it's not even really that close to the
candlesticks alright and it seems a little bit laggy
it takes a while to even catch up to the candlesticks that's why it's not very
close to the candlesticks if you want something a little bit less laggy maybe
check out the instead of the 25 period moving average simple moving average how
about let's try the Hull moving average ah same amount the same look-back period
25 okay but look how much closer it hugs it
and yet it doesn't hug it too quick too closely right it's just less laggy I
think that's pretty cool all right how does it work well it's
based on that formula that I showed you which you don't necessarily have to
memorize to be able to use it so that's just one example if you want to look at
the daily candlestick chart for swing traders hey that's cool too all right
and let's put up the let's try the there it is there's the regular old simple
moving average look how look how long it takes to finally catch up with the price
action and to reflect the trend the direction alright it's just kind of slow
to figure out what's going on what direction it's heading in whereas the
whole moving average yet gets there a little quicker actually more than a
little bit all right so I recommend if you want to take a look at it and if you
want to use it that's up to you none of these indicators are perfect that's for
sure but it might be worth at least trying out taking a look at it virtual
traded paper traded if you want to and then try it out for yourself if you
think that you like it alright but be careful if you use stop losses or you
know make sure you have some sort of risk plan risk assessment some way to
prevent big losses and that's something that I help people with so again my name
is David Modell you want some coaching shoot me an email David Modell at
gmail.com and by the way you can put more than one up just like I do with you
know simple moving averages exponential moving averages you could put two of
them and you could use Hull moving average crossovers why the heck not why
not use it in the same way that you would use regular moving averages is
it's just possibly a newer and more improved version of it pretty cool all
right hey I really appreciate you stopping by and checking out this
indicator I have a library I have a playlist full of almost every indicator
every popular one at least that you're going to see out there so if you want to
click also in the link in the description below this video my
playlists for indicators you can check out I've got quite a lot of them alright
I've covered all the big ones or at least most of the big ones that I know
about hey thanks a lot for watching this so if you like it why not give it a
thumbs up on YouTube and leave a comment do you like the whole moving average
moving average have you used it have you tried it and also if you haven't
subscribed by now come on go ahead subscribe to my channel so you'll get
updated and hit that notification bell so YouTube can update you whenever I put
out a new video like this one thanks a lot I really appreciate it I'll talk to
you again soon