Categories: Forex Code

Elder Impulse System: Your Guide to Forex Trading Success

The Elder Impulse System is a trading system developed by Alexander Elder and described in his bestselling books, “Come Into My Trading Room” and “Trading for a Living”. It is based on Dr. Elder’s three essential principles for success: trend, momentum and protection. The system attempts to identify turning points in the market price, and suggests entry and exit points for trading. It combines trend and momentum. The trend is identified by the use of the Elder Impulse System’s 13-period exponential moving average (EMA). Buy signals occur when the price moves above the EMA and sell signals occur when the price moves below the EMA. Momentum is established using a five-bar reversal pattern called the Elder Force Index. The Elder Force Index measures the strength of a trend by looking for divergences between price movements and extremes in the Force Index. The system is designed to protect traders in bearish markets with stop-loss orders.

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