Outlier Resistant Moving Average

Outlier Resistant Moving Average (ORMA) | MisinkoMaster

Outlier Resistant Moving Average (ORMA) is a trend-following moving average designed to reduce the impact of abnormal price spikes while preserving responsiveness to real market moves. The goal is to provide a smoother and more stable trend reference that remains usable even during volatile or erratic price behavior.

Unlike traditional moving averages that react strongly to sudden price shocks, ORMA adapts its behavior to volatility conditions, helping traders follow trends without being constantly misled by temporary price extremes.

Key Features

Moving average designed to resist distortion from price outliers

Adaptive smoothing behavior that reacts to volatility conditions

Optional ATR-based dynamic bands for trend confirmation

Multiple moving average types supported as the calculation base

Flexible trend detection logic options

Automatic trend coloring and signal labeling

Candle coloring for intuitive trend visualization

How It Works

ORMA builds upon a selectable base moving average and modifies its behavior to reduce the influence of abnormal price movements. Instead of reacting equally to all price changes, the calculation adjusts its responsiveness according to changing volatility conditions.

When market volatility expands, the indicator becomes more conservative, preventing sudden spikes from distorting the average. During calmer conditions, responsiveness increases, allowing the average to track price action more closely.

Optional ATR-based bands can be applied around the average, allowing traders to use band breakouts as confirmation of trend strength rather than relying solely on slope changes.

The result is a moving average that remains stable in noisy markets while still adapting during real trend movements.

Inputs Overview

Source — Selects the price source used in calculations

Moving Average Length — Controls smoothing and calculation sensitivity

ATR Length — Controls volatility measurement used for adaptive behavior

Base Moving Average — Selects which MA type forms the calculation foundation

Trend Logic — Determines whether trend is detected via crossover, slope change, or both

Use ATR Bands — Enables or disables dynamic ATR bands

ATR Factor — Controls band distance from the average

ALMA Offset & Sigma — Parameters used only when ALMA smoothing is selected

Floored Offset — Optional ALMA configuration affecting smoothing behavior

Usage Notes

Useful for filtering noise during volatile or choppy markets

ATR bands can help confirm stronger breakouts or trend continuation

Trend logic modes allow adaptation to different trading styles

Suitable for swing trading, trend-following, and position trading approaches

Can act as dynamic support or resistance in trending markets

Works well when combined with momentum or volume confirmation tools

Summary

Outlier Resistant Moving Average offers a volatility-aware trend reference that helps traders remain aligned with broader price movement while minimizing disruptions from sudden price spikes. It is especially useful for traders seeking smoother trend identification without sacrificing adaptability.