ALMA Smoothing and Trend Coloring with a Gaussian Moving Average

Summary

This note describes the Arnaud Legoux Moving Average, a moving average built from a curve based on the normal, or Gaussian, distribution. Its offset parameter shifts the curve across a range from zero to one, which the document says lets users adjust the balance between smoothness and sensitivity. A sigma parameter controls the shape of the curve’s coefficients.

The indicator can also color its display to highlight trend direction. The document gives no calculation formula, parameter guidance, market examples, or performance evidence, and it does not specify how to interpret the coloring as a trading signal. ALMA is presented as a configurable technical indicator; traders would need further detail and testing to assess its behavior in a particular market or strategy.

Key ideas

• ALMA weights observations using a curve based on the normal distribution.
• The offset parameter adjusts the curve’s placement and affects smoothness and sensitivity.
• Sigma controls the shape of the weighting coefficients.
• The indicator can use color to display trend direction, but no signal rules or performance evidence are provided.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.