What is ALMA?
The Arnaud Legoux moving average is a type of moving average that removes small price fluctuations and improves the trend by applying a moving average twice (once from right to left and another from left to right) according to the Interactive brokers.
This indicator was created in 2009 by Dimitrios Kouzis Loukas and Arnaud Legoux, according to StockManiacs.NET. The intentions of creating this indicator were to reduce fluctuations in the price movements and produce better and smoother moving averages.
How to use the Arnaud Legoux moving average (ALMA)?
This moving average should be built-in in your trading platform depending on the brokerage firm you have or trading platform you use.
You can also have access to this moving average from free online stock market charting services. If you use Tradingview, you can follow these steps from your chart section.
- Click on indicators and strategies icon.
- On the window that will pop up, select the Arnaud Legoux Moving Average.
You can also search for this moving average in the search box by typing in its name.
After selecting the ALMA moving average, it will be plotted on a chart. You can then go to your account and make adjustments depending on how you want to use it.
By default, it will have a window of 9. You can change it to a value you want. You can also change the color, font size, etc. After making your desired modifications, click on the OK button to save the changes you made.
This ALMA is known for fewer lags and smoothing data much better than other forms of MA such as exponential moving average and weighted moving averages.
