The ALMA indicator (moving average) can be purchased separately, or is available as part of the Club Membership. To get access to our entire collection of indicators, including any future releases, click here to join the Club.
The ALMA indicator (Arnaud Legoux Moving Average) was developed by Arnaud Legoux and Dimitrios Kouzis in an attempt to create a new moving average that had a superior smoothness and responsiveness, as compared to the available moving averages at the time. Mr. Legoux states that his ALMA moving average was inspired by the Gaussian Filter and in his paper he compares the moving average to the performance of the HMA, which based on the information provided by Mr. Legoux, the Arnaud Legoux Moving Average outperforms the HMA (in terms of smoothness and responsiveness). One of the concepts that sets the moving average apart from others is that the ALMA was designed to use “a Gaussian distribution shifted with an offset so that it’s not evenly centered on the window but biased towards more recent days.”
As with all of our moving averages, the ALMA is built on our Moving Average Framework, which allows users to easily run the indicator on multiple time frames (MTF), including custom bar types. To preview “The Framework” that makes our indicators a necessary part of every traders arsenal, please review the following video: