Alexander Elder Impulse System

I've been reading Alexander Elder's popular book, "Come Into My Trading Room" and at the bookstore started to read his newest book titled, "Entries & Exits."  He mentions the Impulse System  a lot and most of the traders he interviewed for his latest book use it.  It's great for momentum trading which is what I've been studying with Rob Booker.  Yes this is yet another indicator but it really just incorporates what I already have on the screen, EMA's and MACD histogram.  One measures inertia, the other momentum.  What it does is quite simple.

When both the EMA and the MACD histogram point in the same direction, they recognize an impulse worth following.  

For example, if the 13 EMA is rising (current bar is greater than last bar) and the MACD histogram is rising (current bar is greater than last bar), this is a signal to stick to long trades if you are trading.  The opposite is true for short trades.

The impulse indicator that is sold everywhere colors the price bars green if the impulse is long, red if the impulse is short, and blue if there is no impulse (which means you could go long or short.)  One method of using this is to use 2 time frames for confirmation.  So if you are trading the 15 minute, if the impulse system is showing long trades, multiply your time frame by 5 and check that chart to see if the impulse system is also showing long.  In this case, you would be using the 15 minute and 75 minute charts.

As I said, this is sold everywhere but to be honest is really one of the most simple of indicators to program.  I did it in about 30 minutes.  If you've read some of Elder's books, you may be interested in it.  If not, read about it because Elder has a lot of great content plus he has some sort of big degree in Psychology.

Here is the indicator for esignal.  If you are truly interested and use other charting software than esignal, let me know and I may be able to help.

Right click and save to your esignal Formulas folder. 

Elder Impulse Indicator by Forex Project

Comments

12 Responses to “Alexander Elder Impulse System”

  1. Rich on March 14th, 2007 5:08 pm

    Gerald, yes, you can either right click the link to the indicator and save as elderimpulse.efs or do what you said, which is copy and paste into an ascii file and save as an efs. Once you attach it to your charts, the price bars change to 1 of 3 colors (same colors elder uses) to indicate, buy, sell, or neutral status.

  2. Glenn Hunter on March 20th, 2007 1:28 am

    Hi,

    Is it possible to show the formula for MetaStock v9. I assume with some minor modifications that you then attach the indicator to the chart via the Expert Advisor function in MetaStock.

    Much appreciated if can help. Having the bars coloured would help may analysis.

    Regards

    Glenn

  3. Gerald Pajon on March 14th, 2007 10:05 am

    thank you for posting your indicator. I have been studying Elder’s triple screen for the past month and have made 443 pips over the past month papertrading this system. I too have begun reading the book “Entries and Exits” and find it facinating.

    As I am not a programer (and have no time to be) would you please tell me how to use the program you have posted? Do I just copy and past it into an ascii file and save it as an .efs file? I would appreciate any guidance you can provide as I am an e-signal user but no a programer.

    You may reach me at gspajon@comcast.net…thank you in advance for your time and for posting this message.

  4. max on December 19th, 2006 1:24 am

    thanks so much for this link. Elder has helped me enormously in my trading. I use esignal but have no idea how to use the program you gave us – can u please guide me – i have already saved it into esignal but don’t know how to program my chart with it. I can be reached at projectventures24@yahoo.com. Thnaks so much!

  5. Woldemar on April 21st, 2007 4:49 pm

    Please, give me steb-by-step guide, how insert this Impulse System in Metastock-8 or Metastock-9 ?!!

    I can`t find – how plugg efs-files to them. May be I need converter?

  6. Forex Trader on May 3rd, 2007 10:40 am

    Do you know any place I might be able to get the Elder Impulse indicator for MetaTrader4?

  7. Trader B on May 26th, 2007 3:01 pm

    I would like to second that request for the Elder Impulse indicator for MT4, any help?

  8. Tony Huynh on August 10th, 2007 8:34 am

    For Metastock V10:
    1. Tools->Expert Advisor
    2. Create a New Advisor by clicking on New
    3. Click on Hightlight bar
    4. Click on New to create the first hightlight
    4A.Chose the Colour GREEN and insert the following formula for condition
    MACD()-Mov(MACD(),9,E) > Ref(MACD(),-1)-Ref(Mov(MACD(),9,E),-1)AND Mov(C,13,E) > Ref(Mov(C,13,E),-1)
    5. Click OK
    6. Repeat Step 4&5 but choose colour RED for the following formular for condition
    MACD()-Mov(MACD(),9,E) < Ref(MACD(),-1)-Ref(Mov(MACD(),9,E),-1) AND Mov(C,13,E) < Ref(Mov(C,13,E),-1)

    7. Repeat Step 4&5 but choose colour BLUE for the following formular for condition
    MACD()-Mov(MACD(),9,E) > Ref(MACD(),-1)-Ref(Mov(MACD(),9,E),-1)AND Mov(C,13,E) < Ref(Mov(C,13,E),-1)
    8. Repeat Step 4&5 but choose colour BLUE for the following formular for condition
    MACD()-Mov(MACD(),9,E) < Ref(MACD(),-1)-Ref(Mov(MACD(),9,E),-1)AND Mov(C,13,E) > Ref(Mov(C,13,E),-1)
    9.Click on TAB Name
    10. Write Elder Impulse for name (you can call it what ever you like) and write a comment on the System
    11. Click Ok
    Now the expert adviser Elder Impulse can be attached to our chart

  9. Forex Trader on August 13th, 2008 9:57 am

    I am currently have the Elder Impulse system programmed on Neoticker. I would like to be able to get it on Telecharts as well, as Telecharts makes for much faster viewing. Any suggestions on how to get the Impulse System for TC?

  10. Singhvi on July 23rd, 2008 2:04 pm

    Would this formula for Metastock 10 work with version 9 also?

  11. Marc on September 20th, 2008 12:03 pm

    Has anybody the formula for the Probuilder ?
    http://www.prorealtime.com/de/

  12. Marc on September 20th, 2008 12:04 pm

    Please let me know
    jehwh@gmx.at

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