ALMA — Arnaud Legoux Moving Average

Overview

ALMA applies a Gaussian (bell-curve) distribution as a weight function, centred near the most recent prices, to produce a moving average that filters noise while keeping lag to a minimum. It has become a favourite on TradingView for crypto and forex trend detection. Compare ALMA with other advanced moving averages like the HMA in our indicator guide library to find your optimal smoothing solution.

How It Works

ALMA uses three tuneable parameters: window size (period), offset (0 to 1, controlling the Gaussian centre), and sigma (controlling distribution width). The Gaussian curve weights prices around the offset point most heavily, creating an adaptive filter that minimises both lag and noise simultaneously.

Key Signals

• Price crossing above ALMA signals bullish trend development.
• ALMA slope direction is a cleaner trend indicator than most standard MAs.
• Offset parameter closer to 1 makes ALMA more responsive; closer to 0 adds smoothness.

Common Mistakes

• Using default parameters without understanding what offset and sigma control.
• Over-optimising ALMA parameters to fit historical data — leading to curve-fitting.
• Expecting ALMA to work as a standalone system without confirmation indicators.