i created simple hud some days ago.its png with transparent.
if u wanna to use it in unreal engine 4.10.1 , here it goes.
1)create urs in photoshop.we don’t need alpha channel.
2)export it as png.
3)import to ue4 and double click on it.here’s the setting we need.actually its default when we import.
4)right click on texture and create material.then double click on material.we have sth like below.
5)now in graph editor ,select material node.then in the left panel set setting like below.
dont worry as soon as u change parameters the graph updated automatically.
6)now connect texture to material like below.
ok thats it.now u can assign material to object.
or u can create umg and instead of assign texture ,u can assign ur new transparent material.