Impulse MACD Indicator

Impulse MACD Indicator

The Impulse MACD represents an ultimate momentum oscillator for determining buy-sell signals on MT4. Best for forex and stock day/intraday trading on MTF charts.

The Impulse MACD Indicator is a popular technical analysis tool for forex and stock trading. It is an updated and upgraded version of the MACD indicator, which traders widely use to identify trend direction, moment, and potential trading opportunities.

This Indicator uses a double filter system to analyze market trends and generate trading signals. The first filter is a moving average line that helps to smooth out price movements and identify the overall direction of the trend. The second filter is a histogram bar that measures the difference between the MACD line and the signal line, indicating changes in momentum.

How to Trade Using the Impulse MACD Indicator for MT4
To generate a bullish signal, the MACD moving average line must cross and stay above the zero level while the MACD bars close above the moving average line with a rising pattern. When the MACD bars cross and remain below the moving average line and the MACD moving average line remains below zero, a bearish signal is produced.

In the above GBP/USD chart, the Indicator bars closed below the zero line to signal a bearish momentum. Next, the bars started to close below the signal line, indicating a bearish trend reversal. Meantime, the price broke below the current consolidation range, which we considered a valid price breakout following the downtrend signal and an ideal opportunity to place a sell order.

At a point, the bars started to close above the Impulse MACD signal line, suggesting the price is losing its bearish momentum and it’s an ideal time for a sell-exit.

Conclusion
The Impulse MACD represents a beginner-friendly momentum indicator for MT4. We’ve found it quite effective when applied in higher timeframes. Technically, this indicator works perfectly alongside RSI and Stochastic oscillators.