Arnaud Legoux Moving Average (ALMA)
A moving average that applies a Gaussian-shaped weighting curve offset toward recent prices, designed to reduce both lag and noise at once.
The Arnaud Legoux Moving Average (ALMA) applies a Gaussian (bell-curve-shaped) weighting distribution across its calculation window, with the peak of that curve deliberately offset toward more recent prices, aiming to reduce lag and smooth out noise simultaneously rather than trading one off against the other.
Its two adjustable parameters — an offset controlling how far toward recent data the curve's peak sits, and a sigma value controlling the curve's smoothness — let it be tuned toward either faster responsiveness or greater smoothness depending on how they're set. See Kaavon's dedicated ALMA article for the full calculation.
Examples
- ALMA's Gaussian weighting curve is a structurally different approach from the linear or exponential weighting most other moving averages use.
- Adjusting ALMA's offset and sigma parameters lets a trader tune it toward faster responsiveness or greater smoothness without changing its underlying period length.