Arnaud Legoux Moving Average (ALMA) Indicator Explained

The Arnaud Legoux Moving Average (ALMA) applies a Gaussian-shaped weight curve to price, shifted toward recent bars. The result is unusual: an average nearly as smooth as an SMA but with turn timing close to a fast EMA — which is why ALMA slope filters have become a modern favorite.

How It Works

• A Gaussian window weights the bars, so noise in the middle of the window is suppressed rather than averaged in.
• An offset parameter leans the window toward recent price, trading a little smoothness for responsiveness.
• The output is a clean trend line whose slope changes direction meaningfully rather than flickering.

How to Trade It

Use ALMA the way you'd use any premium trend line: trade only in the direction of its slope, enter on price pullbacks to it, or build a fast/slow ALMA crossover. Because its turns are crisp, ALMA slope conditions produce fewer whipsaw flips than an EMA of the same length.

Building It in Setup.Cash

Add Arnaud Legoux Moving Average (ALMA) in the strategy builder — the length input controls its sensitivity — and use its value in any entry, exit, or filter condition. You can also combine it with other tools in the Indicators Lab or via the AI indicator generator. Compare with HMA, DEMA and TEMA, the other low-lag classics. For the full category overview, see the advanced trend library guide.

Trend tools reward patience: pick one, pair it with a volatility or regime filter, and backtest before trading it live.