#1 Guide to Trade Famous Elder Impulse System on the IQ Option platform


Elder Impulse System

Alexander Elder, a renowned trader and author, is the mastermind behind the Elder Impulse System. This innovative trading approach combines two essential indicators to uncover points where market trends accelerate or decelerate. In this article, we delve into the intricacies of the Elder Impulse System and demonstrate how to effectively apply it to your trading strategy.

Key Takeaways🔑

The Elder Impulse System combines a 13-day EMA and MACD-Histogram for trend identification and momentum measurement.
Green, red, and grey price bars provide easy-to-interpret market signals for trade entry decisions.
Practice using the Elder Impulse System on an IQ Option demo account before integrating it into your live trading strategy.

Introduction to the Elder Impulse System

The Elder Impulse System is a powerful trading tool that leverages two key indicators: a 13-day Exponential Moving Average (EMA) for trend identification, and the MACD-Histogram to gauge trend momentum. By combining these indicators, traders receive valuable insights to guide their trade entry decisions.

Interpreting the Elder Impulse Indicator: Green, Red, and Grey Price Bars

The Elder Impulse Indicator color-codes price bars, making it easy to interpret market signals. Green price bars indicate bullish dominance, red price bars signify bearish dominance, and grey price bars reflect an undecided market.

Constructing the Elder Impulse System

To build the Elder Impulse System, traders must first understand the relationship between the 13-day EMA and the MACD-Histogram. Green price bars form when both indicators are rising, while red price bars occur when both indicators are declining. Grey price bars appear when neither the bulls nor the bears hold sway.

How Elder Impulse System is constructed
How the Elder Impulse System is constructed

Selecting Timeframes for the Elder Impulse System

Alexander Elder suggests that traders choose an intermediate timeframe they prefer, and then multiply it by five to determine the long-term timeframe. While the specific timeframes can vary, the important aspect is to ensure that the chosen timeframes are in alignment with the larger market trend.

Identifying Long-Term Trends with EMA(65)

To identify long-term trends, traders can utilize the EMA(65) by adding it to their charts. A closing price above the EMA(65) indicates an uptrend, while a closing price below the EMA(65) signifies a downtrend.

You can define long-term trend using EMA(65)
You can define long-term trend using the EMA(65)

Using the Elder Impulse System on IQ Option: Opening Call and Put Options

To open a Call option, confirm an uptrend by ensuring the candle closes above the EMA(65). Wait for a green price bar to appear in the Elder Impulse System window, and then enter the trade when the next candle begins to develop. For a 5-minute chart, open a position with a duration of three candles, or 15 minutes.

If you are using 5m charts you use signals for 15 minutes options (3 candles)
If you trade on the 5m charts, you should use the signals for 15 minutes options (3 candles)

For a Put option, confirm a downtrend by verifying the price closes below the EMA(65). Look for a red price bar on the Elder Impulse System graph, and then open a Put option with a duration dependent on the chosen timeframe.

In our example, we use 5-minute candles and open transactions lasting 15 minutes.

Signals to open 15m Put options
The signals to open 15m Put options

Pros and Cons of the Elder Impulse System👍👎

Pros:

  • Combines trend identification and momentum measurement for better trading decisions.
  • Color-coded price bars make it easy to interpret market signals.
  • Helps develop disciplined entry and exit strategies.
  • Can be used to confirm trading setups and avoid false entry signals.

Cons:

  • May generate false signals in choppy or sideways markets.
  • Requires practice and understanding to use effectively.
  • Not a standalone system; additional analysis and risk management strategies are necessary.


Elder Impulse System Components and Applications📊

Component Application
13-day Exponential Moving Average (EMA) Trend identification
MACD-Histogram Momentum measurement
Color-coded price bars Interpreting market signals
EMA(65) Identifying long-term trends

The Essence of the Elder Impulse System: Trade Entry and Exit Strategies

Elder emphasizes the importance of cautiously entering trades while exiting quickly and safely. Many novice traders tend to rush into the market without thorough analysis and hold onto positions for too long, hoping for the price to move in their favor.

By adopting the Elder Impulse System, traders can develop more disciplined entry and exit strategies.

Harnessing the Elder Impulse System to Confirm Trading Setups

The Elder Impulse System serves as a powerful tool for confirming trading setups. By providing an additional layer of verification, it helps traders avoid false entry signals and improve the overall effectiveness of their trading strategies.

Practicing with the Elder Impulse System on an IQ Option Demo Account

Before integrating the Elder Impulse System into your live trading, it’s crucial to familiarize yourself with its nuances by practicing on an IQ Option demo account. This will allow you to gain a deeper understanding of the indicators and fine-tune your approach without risking real capital. Don’t forget to share your experiences and results in the comments section below.

register IQ Option demo account
You can register IQ Option demo account using a form on our website

Conclusion

The Elder Impulse System is a valuable addition to any trader’s toolkit. By combining trend identification and momentum measurement, it helps traders uncover crucial points where market trends accelerate or decelerate.

With careful application and practice, the Elder Impulse System can significantly enhance your trading performance and boost your confidence in the market. Good luck and happy trading!

Q&A: Understanding the Elder Impulse System❓

  • Q: What is the primary purpose of the Elder Impulse System?A: The Elder Impulse System aims to help traders identify points where market trends accelerate or decelerate, enabling them to make better-informed trade entry decisions.
  • Q: What two indicators does the Elder Impulse System combine?A: The system combines a 13-day Exponential Moving Average (EMA) for trend identification and the MACD-Histogram for momentum measurement.
  • Q: How does the Elder Impulse System color-code price bars?A: Green price bars indicate bullish dominance, red price bars signify bearish dominance, and grey price bars reflect an undecided market.
  • Q: What is the recommended approach for selecting timeframes with the Elder Impulse System?A: Alexander Elder suggests choosing an intermediate timeframe and multiplying it by five to determine the long-term timeframe, ensuring alignment with the larger market trend.
  • Q: How can traders practice using the Elder Impulse System before applying it to live trading?A: Traders can practice using the system on an IQ Option demo account to familiarize themselves with the indicators and fine-tune their approach without risking real capital.

GENERAL RISK WARNING

The financial products offered by the company carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose.
Kindly note that this article does not provide any investment advice. The information presented regarding past events or potential future developments is solely an opinion and cannot be guaranteed as factual, including the provided examples. We caution readers accordingly.

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Bart Bregman

Author / IQ Option expert: "My name is Bart Bregman, I have 9 years of full-time professional trading experience. I've been trading with IQ Option for more than 7 years, mainly on the shorter time frames doing technical analyses, and have many experience with Binary Options, CFDs, Options, and Crypto trading. There is no such thing as a bad trade! As a digital nomad trader, I'm mostly traveling all over the world. Follow my journey on Instagram at https://www.instagram.com/bart_bregman/. "

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