--- title: "Arnaud Legoux Moving Average: Formula" description: "A moving average that weights recent prices with a Gaussian curve whose peak position and width can be adjusted. It aims to reduce lag while smoothing noise." canonical: https://www.getswoopr.com/indicators/trend/arnaud-legoux-moving-average/ source: "Swoopr Investment: https://www.getswoopr.com" --- ## Direct Answer > A moving average that weights recent prices with a Gaussian curve whose peak position and width can be adjusted. It aims to reduce lag while smoothing noise. Like other moving averages, price above ALMA and a rising slope are read as upward trend, and the reverse as downward. # Arnaud Legoux Moving Average: Formula, Meaning, Signals, Examples and How to Use It ## How Is Arnaud Legoux Moving Average Calculated? A moving average that weights recent prices with a Gaussian curve whose peak position and width can be adjusted. It aims to reduce lag while smoothing noise. **Formula:** `ALMA = Sum(w_i * P_i) / Sum(w_i), with w_i = exp(-(i - m)^2 / (2*s^2)), m = offset*(N - 1), s = N / sigma` **Inputs:** - Prices - Window length N (9 is a common default) - Offset (0.85 is a common default) - Sigma (6 is a common default) **Worked example.** With a 9-bar window, offset 0.85 and sigma 6, the newest bar (index 8) receives a raw Gaussian weight of 0.726 before normalization. The inputs are illustrative numbers, not market data. **Reading it.** Like other moving averages, price above ALMA and a rising slope are read as upward trend, and the reverse as downward. A higher offset moves the weight peak toward recent bars for quicker response, while a higher sigma makes the weighting narrower. **Limits.** The extra offset and sigma parameters make it easy to tune to past data. Even with less lag it still trails price, and settings differ across platforms. ## What is Arnaud Legoux Moving Average? A moving average that weights recent prices with a Gaussian curve whose peak position and width can be adjusted. It aims to reduce lag while smoothing noise. ## How to use Arnaud Legoux Moving Average Like other moving averages, price above ALMA and a rising slope are read as upward trend, and the reverse as downward. A higher offset moves the weight peak toward recent bars for quicker response, while a higher sigma makes the weighting narrower. A reading alone is never a buy or sell signal; it needs context from price structure, volume, volatility and the broader market regime. ## Strengths - A Gaussian weighting curve gives smooth rather than linear decay, so no single bar's removal produces the abrupt step seen in a simple average. - The offset parameter lets the peak of the weights be moved toward the newest bar or toward the middle, trading smoothness for responsiveness explicitly. - Reproducible when the formula and data convention are fixed. ## Weaknesses and limitations - Weights in the tails of the Gaussian are near zero, so the effective window is shorter than the nominal length N. - Three interacting settings (length, offset and sigma) make it hard to tell which combination is actually doing the smoothing. - Correlated indicators can create false confidence by repeating the same underlying information. ## Editorial and risk note This page is educational content, not individualized investment advice. It should not imply guaranteed prediction, accuracy or outperformance. ## Frequently Asked Questions Is Arnaud Legoux Moving Average a buy or sell signal? No. Like other moving averages, price above ALMA and a rising slope are read as upward trend, and the reverse as downward. The extra offset and sigma parameters make it easy to tune to past data. A trade built on it still needs a trigger, an invalidation rule, a position size and realistic execution assumptions. What is the best setting for Arnaud Legoux Moving Average? Arnaud Legoux Moving Average takes these inputs: prices; window length N (9 is a common default); offset (0.85 is a common default). There is no universal best setting for the tunable ones, so test them across instruments, regimes and out-of-sample periods and favor stable parameter regions over one historical winner. Can Arnaud Legoux Moving Average be used by itself? The extra offset and sigma parameters make it easy to tune to past data. Even with less lag it still trails price, and settings differ across platforms. For that reason it is read next to measures of direction, participation, valuation, liquidity and risk, not alone. Does Arnaud Legoux Moving Average work on every timeframe? The calculation (ALMA = Sum(w_i * P_i) / Sum(w_i), with w_i = exp(-(i - m)^2 / (2*s^2)), m = offset*(N - 1), s = N / sigma) can be run on any bar size, but behavior is not portable: a reading on a five-minute chart describes a very different market window from the same reading on a daily chart. Validate the exact timeframe before relying on it. Why does Arnaud Legoux Moving Average give false signals? Weights in the tails of the Gaussian are near zero, so the effective window is shorter than the nominal length N. Three interacting settings (length, offset and sigma) make it hard to tell which combination is actually doing the smoothing. Lag, noise and regime changes add to this, because market participants react to new information after the reading is calculated. How should Arnaud Legoux Moving Average be backtested? Rebuild Arnaud Legoux Moving Average from prices using point-in-time data, write the rules before testing, include delisted securities where relevant, model realistic fills and costs, reserve a validation sample and compare with a simpler baseline. S Swoopr Editorial Team The Swoopr Editorial Team produces independent investment education, research, and tools for understanding markets, evaluating opportunities, and managing risk. All content is educational only and does not constitute personalized investment advice. See our [editorial policy](https://www.getswoopr.com/legal/editorial-policy/) and [corrections policy](https://www.getswoopr.com/legal/corrections-policy/).