Elder Impulse System Indicator

Elder Impulse System Indicator

Elder Impulse System Indicator for MT4 provides trend based forex trading signals with BULLISH BEARISH and NEUTRAL signals.

The Elder Impulse System Indicator for MT4 provides forex trend trading signals. The indicator is based on MACD and Exponential Moving Averages – EMA and identifies the trend strength. As a result, it provides a histogram with BULLISH, NEUTRAL, and BEARISH trend signals. So, forex traders can use them to BUY and SELL and also have an early exit.

Most traders using trend trading strategies enter the market as immediately as possible and stay for extended periods in the market hoping that the market will trend longer. But Alexander Elder designed the system to enter the market only with confirmation of the trend, but to exit the market as early as possible contrary to many technical traders. This justifies the presence of the NEUTRAL histogram bar. It is imperative that most followers of this system exit at the appearance of the Neutral histogram bar, however many traders still wait for the opposite signal bar to exit. So, traders should apply the exit rules according to their discretion.

The indicator works well for new and advanced forex traders. It can be applied to all intraday time frames and the higher time frame price charts including the Daily, Weekly, and Monthly charts.

Elder Impulse System Indicator For MT4 Trading Setup

The above USDCAD H4 price chart shows the Elder impulse system indicator for MT4 in action. The indicator provides a three-color histogram with BULLISH histogram bars shown in GREEN, BEARISH bars in RED, and NEUTRAL bars in BLUE.

Forex traders should enter the market with a BUY position if the histogram shows a GREEN BULLISH bar. The best stop loss is below the previous swing low. On the other hand, traders can book the profits if the histogram changes to BLUE Neutral bar or RED BEARISH bar.

Similarly, the appearance of a RED histogram bar indicates a BEARISH market. So, forex traders should take a SELL trade with a stop loss above the previous high. Furthermore, traders can exit the position with a profit if the histogram color changes to BLUE or GREEN.

The Elder Impulse system is a trend following trading system. So, for best trading results forex traders should apply a top-down approach in technical analysis. Since the trend in higher time frames tends to last longer. Forex technical traders should use the higher time frame for trend direction. Alexander Elder recommends using two different time frames. One to identify the trend and the other to enter and exit the market. Furthermore, the higher time frame for trend identification should be 5 times greater than the trading time frame.

So, forex traders should identify the trend in the higher time frame chart and use the lower time frame chart to find the best entry point.

Conclusion
The Elder impulse system indicator for MT4 works great for forex traders using trend following technical strategies. However, for best results, forex traders should confirm the signals using price action, support and resistance line, trend lines, or channels. Additionally, the indicator is free to download and easy to install.