The Elder Impulse System is a visual trading tool designed to help market participants identify the prevailing direction of price momentum by analyzing two distinct types of technical indicators simultaneously. Instead of looking at just one piece of data, this script synthesizes information from moving averages and trend oscillators to provide a clear "pulse" of the market.
How the Logic Works
The system operates by monitoring two core components of the market:
- Trend Direction (The EMA): It tracks a 13-period Exponential Moving Average (EMA). This serves as a baseline for the overall trend, smoothing out price fluctuations to show whether the general direction is leaning upward or downward over a short-to-medium timeframe.
- Momentum Strength (The MACD Histogram): It calculates the MACD (Moving Average Convergence Divergence) values. Specifically, it looks at the "Histogram," which represents the difference between two different moving averages. This helps determine the speed and strength of the price movement.
Signal Interpretation
By combining these two factors, the script categorizes the market into three distinct states, displayed as a histogram in a separate window:
- Impulse Up (Bullish): The system identifies an "Upward Impulse" when both the 13-period EMA is rising and the MACD Histogram is increasing. When these two conditions align, it suggests strong buying pressure and a confirming upward trend.
- Impulse Down (Bearish): Conversely, a "Downward Impulse" occurs when both the 13-period EMA is falling and the MACD Histogram is decreasing. This alignment indicates significant selling pressure and a confirming downward trend.
- Neutral: If the indicators are not in agreement—for instance, if the price is rising but the momentum is slowing down (or vice versa)—the system marks the status as Neutral. This tells the user that the market may be ranging, consolidating, or lacking a clear directional bias.
Summary for Traders
The primary goal of this logic is to filter out "noise." By requiring both the trend indicator and the momentum indicator to point in the same direction before signaling an impulse, the script helps traders avoid entering positions during weak moves where price action might be deceptive. It aims to highlight periods of high-conviction movement while highlighting zones of uncertainty.
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Elder_Impulse_System
//+--------------------------------------------------------------------------------------------+
//| Elder_Impulse_System.mq4 |
//| Copyright © 2007, http://finance.groups.yahoo.com/group/MetaTrader_Experts_and_Indicators/ |
//| http://finance.groups.yahoo.com/group/MetaTrader_Experts_and_Indicators/ |
//+--------------------------------------------------------------------------------------------+
#property copyright "Copyright © 2007, http://finance.groups.yahoo.com/group/MetaTrader_Experts_and_Indicators/"
#property link "http://finance.groups.yahoo.com/group/MetaTrader_Experts_and_Indicators/"
// I used code from Macd_Correct by David W. Thomas and eSignal code supplied by bentleybrian <bentleybrian@yahoo.com>
// to build this indicator . Built by transport_david .
#property indicator_separate_window
//----
#property indicator_minimum 0
#property indicator_maximum 1
#property indicator_buffers 3
#property indicator_color1 Lime
#property indicator_color2 Blue
#property indicator_color3 Red
//----
extern int ShowBars=5000;
//---- buffers
double Impulse_Up[];
double Neutral[];
double Impulse_Down[];
double MACDLineBuffer[];
double SignalLineBuffer[];
double HistogramBuffer[];
//---- variables
double alpha=0;
double alpha_1=0;
/*
var myStudy1=null;
var myStudy2=null;
var myStudy3=null;
function preMain()
{
setStudyTitle("Impulse Indicator");
setCursorLabelName("Impulse", 0);
setCursorLabelName("MACDHist",1);
setPriceStudy(true);
}
function main()
{
var myStudy1 = ema(13);
var myStudy2 = new macdHist(12,26,9);
var myStudy3 = ema(13);
//Impulse Up
if ((myStudy1.getValue(0) > myStudy1.getValue(-1)) &&
(myStudy2.getValue(0) > myStudy2.getValue(-1)))
{
setPriceBarColor(Color.green);
}
//Impulse Down
else if ((myStudy1.getValue(0) < myStudy1.getValue(-1)) &&
(myStudy2.getValue(0) < myStudy2.getValue(-1)) )
{
setPriceBarColor(Color.red);
}
//Neutral
else
{
setPriceBarColor(Color.blue);
}
*/
//+------------------------------------------------------------------+
//| Custom indicator initialization function |
//+------------------------------------------------------------------+
int init()
{
//---- indicators
IndicatorBuffers(6);
SetIndexStyle(0,DRAW_HISTOGRAM,STYLE_SOLID,4);
SetIndexEmptyValue(0,0.0);
SetIndexBuffer(0,Impulse_Up);
//
SetIndexStyle(1,DRAW_HISTOGRAM,STYLE_SOLID,4);
SetIndexEmptyValue(1,0.0);
SetIndexBuffer(1,Neutral);
//
SetIndexStyle(2,DRAW_HISTOGRAM,STYLE_SOLID,4);
SetIndexEmptyValue(2,0.0);
SetIndexBuffer(2,Impulse_Down);
//
SetIndexEmptyValue(3,0.0);
SetIndexBuffer(3,MACDLineBuffer);
SetIndexEmptyValue(4,0.0);
SetIndexBuffer(4,SignalLineBuffer);
SetIndexEmptyValue(5,0.0);
SetIndexBuffer(5,HistogramBuffer);
//----
return(0);
}
//+------------------------------------------------------------------+
//| Custom indicator deinitialization function |
//+------------------------------------------------------------------+
int deinit()
{
//----
//----
return(0);
}
//+------------------------------------------------------------------+
//| Custom indicator iteration function |
//+------------------------------------------------------------------+
int start()
{
//----
alpha=2.0/(9 + 1.0);
alpha_1=1.0 - alpha;
//----
int shift=ShowBars;
if (ShowBars > Bars) ShowBars=Bars;
for( shift=ShowBars; shift>=0; shift-- )
{
double myStudy1_value0=iMA(Symbol(),0,13,0,MODE_EMA,PRICE_CLOSE,shift);
double myStudy1_value1=iMA(Symbol(),0,13,0,MODE_EMA,PRICE_CLOSE,shift+1);
//----
MACDLineBuffer[shift] =(iMA(Symbol(),0,12,0,MODE_EMA,PRICE_CLOSE,shift) - iMA(Symbol(),0,26,0,MODE_EMA,PRICE_CLOSE,shift));
SignalLineBuffer[shift]=(alpha*MACDLineBuffer[shift]) + (alpha_1*SignalLineBuffer[shift+1]);
//----
double myStudy2_value0=MACDLineBuffer[shift] - SignalLineBuffer[shift];
double myStudy2_value1=MACDLineBuffer[shift+1] - SignalLineBuffer[shift+1];
//----
if((myStudy1_value0 > myStudy1_value1) && (myStudy2_value0 > myStudy2_value1)){ Impulse_Up[shift]=1; } else { Impulse_Up[shift]=0.0; }
if((myStudy1_value0 < myStudy1_value1) && (myStudy2_value0 < myStudy2_value1)){ Impulse_Down[shift]=1; } else { Impulse_Down[shift]=0.0; }
if((Impulse_Up[shift]==0.0) && (Impulse_Down[shift]==0.0)){ Neutral[shift]=1; } else { Neutral[shift]=0.0; }
}
//----
return(0);
}
//+------------------------------------------------------------------+
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