The ALMA + VHF indicator for ThinkOrSwim combines an adaptive moving average (Arnaud Legoux Moving Average) with the Vertical Horizontal Filter (VHF) to enhance trend detection by adjusting for smoothness and responsiveness. This approach, inspired by a notable post here, integrates the VHF to refine trend analysis further.
We've shared several strategies in the attached screenshots, including the use of dual ALMA curves—one fast and one slow. Incorporating VHF with the fast ALMA curve provides an additional layer of trend confirmation. Signals for buying or selling are generated through the classic moving average crossover technique, with the fast ALMA's trend direction acting as a confirmatory signal. However, traders should note that, like all trend-following indicators, this method may be less effective in range-bound markets. Therefore, it's advisable to complement this setup with tools that help discern between trending and ranging market conditions. The provided screenshots and video demonstrate the application of the VHF indicator in this context.
ALMA + VHF Features:
- Can be used as a standard ALMA indicator.
- Have the option to enable VHF and be used as a trend indicator at the same time.
- Custom colors for when either used as a moving average tracer or as a trend indicator.
- The included VHF code utilizes several outputs and is basically a copy of our VHF indicator.
Review the screenshots and video for setup options.
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