Elder Impulse System signal indicator is Alexander Elder's impulse system. The system uses the slope of the exponential moving average and the MACD histogram to classify trends.
The indicator has three input parameters:
- EMA period
- MACD fast EMA period
- MACD slow EMA period
The system has four types:
- EMA is rising, MACD histogram is rising: the signal is 'Long or stand aside, no shorting'
- EMA is falling, MACD histogram is falling: the signal is 'Short or stand aside, no buying'
- EMA is rising, MACD histogram is falling: the signal is 'Either long or short'
- EMA is falling, MACD histogram is rising: the signal is 'Either long or short'
Three signals can be retrieved from four states:
Long or stand aside, no shorting,
Short or stand aside, no buying and
Either long or short.
These signals are displayed by the indicator.
