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ALMA: Arnaud Legoux Moving Average

A smooth moving average whose weights follow a bell curve placed near the newest candles.

2 min read · Try it on a live chart ↗

The idea in plain words

ALMA wants both smoothness and speed. It weights the candles with a Gaussian curve: the offset moves the peak of the curve towards recent candles (faster), the sigma sets how wide it is (smoother).

How it is calculated

For N candles, give candle k the weight e^(−(k − m)² ÷ (2s²)) with m = offset × (N − 1) and s = N ÷ sigma, then take the weighted average of the closes.

m = offset × (N − 1),  s = N ÷ sigma
w(k) = exp(−(k − m)² ÷ (2 s²)),  k = 0 … N−1 (oldest to newest)
ALMA = Σ w(k) × close(k) ÷ Σ w(k)

How to use it

  • As a trend line that reacts quickly without zig-zagging.
  • Defaults 9 / 0.85 / 6 are the author's suggestion.

Drawing conclusions

  • Offset closer to 1 = faster, closer to 0 = smoother. Higher sigma = sharper weighting.

Example

BTCUSD H4: ALMA(9) follows the swings closely and stays smooth; the price closing back below it after a rally is an early sign of a pause.

Prices in examples are illustrative.

Watch out for

  • Like every moving average it confirms trends, it does not forecast them.

A little history

Developed by Arnaud Legoux and Dimitrios Kouzis-Loukas in 2009.

Educational content only. No indicator or pattern predicts the future, and nothing here is investment advice.