Arnaud Legoux Moving Average
Trend, ALMA
- What it shows
A smooth moving average whose weights are shaped like a bell curve, so it is both smooth and quick to react.
- How it is built
Bar weights follow a Gaussian curve whose peak is moved toward recent bars by an offset, and whose width is set by sigma.
Default: Length 9, offset 0.85, sigma 6, source close.
- How traders read it
- Offset close to 1 makes it faster, close to 0 smoother.
- Direction of the line and price against it are read as for any average.
- A good fit when a smooth line with little delay is wanted.
- History
Created by Arnaud Legoux and Dimitrios Kouzis-Loukas in 2009.
Arnaud Legoux and Dimitrios Kouzis-Loukas, 2009
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