The Elder Impulse System indicator for MetaTrader4 was developed by Alexander Elder and was first mentioned in his book, Come Into My Trading Room. Elder’s system spots inflection points where a trend speeds up or slows down.
Two indicators make up the Elder_Impulse_System indicator, a 13-day exponential moving average and the MACD histogram. The moving average is used in gauging trend while the MACD is deployed in measuring momentum.
In order to be able to spot tradeable impulses, the Elder Impulse System combines trend following and momentum. The indicator is color coded into price bars for easy visualization.
The Elder_Impulse_System can be applied to different timeframes, as such trading should be in sync the bigger trend. It is advised that you set your trading time frame and tag it intermediate.
The intermediate time is multiplied by five to get long-term timeframe. Weekly charts for a long-term timeframe is derived from setting the intermediate charts on daily.
Price is said to be bullish when the long-term trend is considered bullish and the Elder_Impulse_System turns bullish on the intermediate term trend. This means that in order to be able to go bullish on the daily chart, the weekly chart has to shows a clear uptrend.
However, price is said to be bearish when the longer term trend is bearish and the Elder_Impulse_System goes bearish on the intermediate term trend.
For instance, the weekly chart is required to depict a clear sell signal along with the daily chart. The color representation has the lime bars represent a bullish trend, red bars depict bearish trends, while the blue bars are for flat market sessions.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart window indicator
Customization options: Variable (ShowBars), Colors, width & Style.
Time frames: 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: trend, momentum