The Elder Impulse System was designed by Alexander Elder and featured in his book, Come Into My Trading Room. According to Elder, “the system identifies inflection points where a trend speeds up or slows down“.
The Impulse System is based on two indicators, a 13-day exponential moving average and the MACD-Histogram. The moving average identifies the trend, while the MACD-Histogram measures momentum. As a result, the Impulse System combines trend following and momentum to identify tradable impulses.