Alexander Elder's Impulse System combines two measures to determine market momentum:
When both indicators are rising, the impulse is green; when both are falling, the impulse is red. When the indicators move in opposite directions, the impulse is blue.
Elder also uses his system across two timeframes: the main timeframe is used to observe the impulse, while the higher timeframe acts as a filter. A red impulse on the higher timeframe rules out long positions, while a green impulse rules out short positions; a blue impulse remains neutral.
Find Alexander Elder's detailed explanations of the Impulse System in his book The New Trading for a Living, published by Wiley.
The Alexander Elder Impulse System Indicator displays the green, blue and red impulse states directly on or below the chart.
Several display configurations allow you to adapt the indicator to your preferred layout. The impulse of the chart timeframe can be displayed on its own or together with the impulse of a higher timeframe.
On-chart display: the candles are coloured according to the impulse of the chart timeframe. A dot below each candle shows the impulse colour of the higher timeframe. A BarChart version of the indicator is also included, providing the same information on charts using this display type.
Below-chart display: two rows of coloured dots allow you to view both impulses simultaneously. The upper row corresponds to the chart timeframe and the lower row to the higher timeframe.
A third configuration keeps the standard Japanese candlestick colours and displays both impulses as dots directly below the candles: the upper dot corresponds to the chart timeframe and the lower dot to the higher timeframe.
In each of these configurations, the higher-timeframe impulse display can be disabled.
The indicator works with 11 predefined timeframe pairs:
Many parameters allow you to adapt the display to your own criteria. All settings can be adjusted directly from the indicator's “Configuration” menu in ProRealTime, without modifying the code.
Discover our Elder Impulse System Screener to scan the market for the first green or red impulses.
Adjustable validation criteria:
Display options:
Video presentation:
Details of available settings:
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Our proposed tools (indicators and screeners) are not investment advices but tools allowing everyone to find specific graphic configurations. The automated trading systems offered have been developed and optimised using historical data; however, past performance is no guarantee of future results. Investing in the financial markets involves risks up to and including the total loss of capital. The user of the proposed tools understands and accepts that the use of these tools is under his sole and entire responsibility. P2C Trading declines all responsibility in the use of the tools and the consequences that would result.
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