Elder Impulse System

Momentum: Short term trades using the 60 (elder) minute chart – SPY 60 min

Elder, with FYI-MACD and RSI for entry/exits. – article link. Our favorite modified Elder system

Elder: A buy signal occurs when the long-term trend is deemed bullish and the Elder Impulse System turns bullish on the intermediate term trend. In other words, the weekly chart shows a clear uptrend and this means only buy signals are heeded on the daily chart. Sell signals are ignored. Elder suggests exiting when one of the two indicators turns down, either the 13-day EMA or the MACD-Histogram. Because the MACD-Histogram is based on a momentum oscillator, it is usually the first to turn down.

A sell signal occurs when the long-term trend is deemed bearish and the Elder Impulse System turns bearish on the intermediate term trend. For example, the weekly chart shows a clear downtrend and this means only sell signals are heeded on the daily chart. Buy signals are ignored. Elder suggests exiting when one of the two indicators turns up, either the 13-day EMA or the MACD-Histogram. Because the MACD-Histogram is based on a momentum oscillator, it is usually the first to turn up. The Elder Impulse System is designed to catch relatively short price moves. Elder notes the following: “The Impulse System encourages you to enter cautiously but exit fast. This is the professional approach to trading, the total opposite of the amateur’s style. Beginners jump into trades without thinking too much and take forever to get out, hoping and waiting for the market to turn their way.”   Elder Education link “E” ^ stockcharts.com

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