Parameters
Learn how adjusting ALMA's parameters changes signal sensitivity and indicator behavior.
Learn how adjusting ALMA’s parameters changes signal sensitivity and indicator behavior.
Overview
Section titled “Overview”Arnaud Legoux Moving Average has one primary parameter: Period (the number of bars used for smoothing). The standard setting (14-20 bars) works for most timeframes — shorter periods for scalping, longer for position trading.
ALMA Period
What It Controls: The number of bars used to calculate the Arnaud Legoux Moving Average — determines how much price history influences the current value.
Default: 14 bars
How It Works:
- Lower values (5–10): More responsive to price changes, stays closer to price, more crosses
- Standard values (11–20): Balanced smoothing suitable for most strategies
- Higher values (21–50): Very smooth, fewer crosses, better for identifying major trends
What Happens at Extremes
Period = 5 (Very Short)
- MA hugs price closely — almost indistinguishable from price on higher timeframes
- Frequent crosses generate many signals, most are false
- Useful for scalping where you need immediate trend feedback
- Risk: too much noise makes it unreliable as a trend filter
Period = 50 (Very Long)
- MA is very smooth, capturing only major trend changes
- Crosses are rare but highly significant when they occur
- Excellent for position trading and major trend identification
- Risk: significant lag means you enter trends late and exit late
Timeframe Recommendations
| Timeframe | Recommended | Notes |
|---|---|---|
| 1-Minute | 5–9 | Very responsive for scalping |
| 5-Minute | 9–14 | Balanced for intraday |
| 15-Minute | 14–20 | Standard for day trading |
| 1-Hour | 14–20 | Standard for swing entries |
| 4-Hour | 20–30 | Balanced for position entries |
| Daily | 20–50 | Standard for position trading |