The author said: “For a long time I’ve tried to find an indicator that would color bars based on the Elder’s impulse system. All that I found didn’t work properly. For example, a similar indicator color bars depending on the movement of the MACD line and the signal line of MACD, but Elder suggested painting bars depending on the movement of the moving average of the price and the oscillator based on MACD. “
It was a hybrid of MACD, MACD histogram and the impulse system. The meaning is the following:
the histogram bar is colored in green when the histogram and the price chart MA are both increasing;
the histogram bar is colored in pink when the histogram and the price chart MA are both falling;
the histogram bar is colored in blue when the histogram and the price chart MA go in different directions;
Alexander Elder calls this system a system of censorship: when the bar is green, do not sell; when the bar is pink, do not buy.
This indicator was first implemented in MQL4 and published in Code Base on 03.10.2009.
The indicator uses SmoothAlgorithms.mqh library classes (must be copied to the terminal_data_folder\MQL5\Include). The use of the classes was thoroughly described in the article “Averaging Price Series for Intermediate Calculations Without Using Additional Buffers”.
