Impulse Indicator: Divergence and Failure-Swing Reversal Signals

Summary

The document describes an Impulse indicator and a reversal-reading method resembling RSI analysis. It says the indicator tracks points passed and supports the available moving-average calculation methods. The central signal is divergence: price makes a new high while the indicator fails to exceed its previous high, suggesting a possible reversal. A further condition, called a failure swing, is presented as confirmation: the indicator turns down and falls below its latest trough.

The document offers a qualitative description only. It provides no calculation details, parameter guidance, chart examples, backtest, or performance evidence, so it does not establish how reliable the signals are or how they should be traded. Its wording also switches to “Rindicator” when describing the confirmation, leaving some ambiguity about the indicator name. Traders would need to validate the method and define risk controls before using it.

Key ideas

• The indicator is described as counting points passed and supporting enumerated moving-average methods.
• A bearish divergence occurs when price reaches a new high but the indicator does not surpass its earlier high.
• The divergence is framed as a possible warning of an impending reversal.
• A downward move below the indicator’s latest trough is described as a failure swing that confirms the warning.
• The document gives no empirical evidence or detailed implementation guidance for these signals.

Tags

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