Elder_Impulse_System_v1
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Overview of the Elder Impulse System
The Elder Impulse System is a technical analysis tool designed to help traders identify the underlying momentum and direction of price movements. Rather than looking at price in isolation, this script combines two distinct mathematical models—an Exponential Moving Average (EMA) and a Moving Average Convergence Divergence (MACD) histogram—to determine if the market is trending upwards, downwards, or remaining in a neutral state.
How the Logic Works
The tool operates by comparing the current state of the market against its immediate past to detect "impulses." It evaluates two primary conditions simultaneously:
1. Trend Momentum (The EMA Component) The script tracks a 13-period Exponential Moving Average. This average smooths out price fluctuations to reveal the general direction of the trend. By comparing the current value of this average to its previous value, the tool can see if the broader trend is gaining strength or losing it.
2. Oscillatory Momentum (The MACD Component) Complementing the trend analysis, the script utilizes a MACD calculation. This involves comparing two different moving averages (the 12-period and 26-period) to create a "MACD Line," which is then smoothed into a "Signal Line." The difference between these lines forms the Histogram. The tool monitors this histogram to detect rapid shifts in momentum that might precede larger price moves.
Market Status Classifications
By synthesizing the data from both the EMA and the MACD Histogram, the script classifies the market into three distinct categories:
- Impulse Up (Bullish): This occurs when both the EMA is rising and the MACD Histogram is increasing. When these two forces align upward, it signals a strong bullish momentum, suggesting that buyers are in control.
- Impulse Down (Bearish): This occurs when both the EMA is falling and the MACD Histogram is decreasing. When both indicators move downward together, it signals strong bearish momentum, suggesting that sellers are dominating the market.
- Neutral: If the indicators provide conflicting signals—for example, if the trend is moving up but the histogram is falling (or vice versa)—the script classifies the market as Neutral. This suggests a lack of clear direction or a period of consolidation where no definitive "impulse" is present.
Visual Presentation
The indicator translates these mathematical calculations into a visual format. It organizes these signals into separate components, allowing you to see at a glance whether the current price action is backed by synchronized momentum across different types of market data.
//+--------------------------------------------------------------------------------------------+
//| 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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