Elder Impulse System Coloring for MACD Oscillator Bars

Summary

ImpulseOsMA combines the MACD oscillator histogram with the direction of a moving average of price to color bars according to whether momentum and the average agree. Bars are green when both are rising, pink when both are falling, and blue when they move in opposite directions. The document attributes the underlying impulse concept to Alexander Elder and describes it as a filter on trading: avoid selling during green bars and avoid buying during pink bars.

The text explains the indicator’s signal logic and notes that an earlier version was published for MetaTrader in 2009. It supplies no performance testing, market examples, parameter guidance, or evidence that the color filter improves returns. The colors therefore indicate directional agreement rather than a complete entry, exit, or risk-management system. The document also mentions a required smoothing library for the implementation, but the transferable lesson is the combination of price-average slope and MACD-histogram direction.

Key ideas

• The indicator combines MACD histogram direction with the direction of a price moving average.
• It marks agreement on rising directions in green and agreement on falling directions in pink.
• Blue marks periods when the two components move in opposite directions.
• The impulse colors are presented as a trading filter rather than a complete strategy.
• The document provides no backtest or evidence of profitability.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.