Triple Moving Average & Elder Impulse

The Triple Moving Average & Elder Impulse indicator provides a comprehensive trend-following toolkit by combining three customizable moving averages with the Elder Impulse System to identify market momentum and trend direction within a single script.

Usage

The Triple Moving Average & Elder Impulse tool is used to identify trend structure and trade momentum simultaneously. By plotting three distinct moving averages (typically short, medium, and long-term), users can visualize dynamic support and resistance levels as well as trend crossovers.

The Elder Impulse System acts as a filter for price action by coloring the price bars based on the relationship between an Exponential Moving Average (EMA) and the MACD Histogram.

• Green Bars: Occur when both the EMA and MACD Histogram are rising, indicating strong bullish momentum.
• Red Bars: Occur when both the EMA and MACD Histogram are falling, indicating strong bearish momentum.
• Blue Bars: Occur when the EMA and MACD Histogram are moving in opposite directions, indicating a neutral state or a potential trend transition.

Users can toggle the Elder Impulse System on or off to maintain standard candle coloring while keeping the moving average framework active.

Details

The indicator calculates three moving averages based on user-defined lengths and types (SMA or EMA). This allows for classic trend analysis, such as identifying the "Golden Cross" or "Death Cross" between moving averages like the 50-period and 200-period lines.

The Elder Impulse System implementation relies on two specific components:

1. Price Inertia: Measured by a 13-period EMA. If the current EMA is higher than the previous bar's EMA, the inertia is considered upward.
2. Market Momentum: Measured by the slope of the MACD Histogram (default 12, 26, 9). A rising histogram indicates increasing bullish momentum.

The script combines these logic gates to determine bar colors, providing a visual "go/no-go" signal for trend-following strategies.

Settings

Elder Impulse

• Elder Impulse: Toggles the bar coloring system on or off.
• MACD Fast Length: Sets the fast period for the MACD calculation used in the impulse system.
• MACD Slow Length: Sets the slow period for the MACD calculation.
• MACD Signal Length: Sets the smoothing period for the MACD signal line.
• EMA Length: Determines the period for the EMA used to detect price inertia.

Triple MA

• Triple MA1/MA2/MA3: Sets the lookback period for each of the three plotted moving averages.
• Triple MA Source: Determines the price data (e.g., Close, Open, High, Low) used for the MA calculations.
• Triple MA Type: Allows the user to switch between Simple Moving Averages (SMA) and Exponential Moving Averages (EMA).

FAQ

How do I interpret the blue bars in the Elder Impulse system? Blue bars indicate a neutral market state where the price inertia (EMA) and market momentum (MACD) are not in sync. This often suggests a period of consolidation or a potential trend reversal where taking new positions may carry higher risk.

Can I use different moving average types for each of the three lines? The current version applies the selected "Triple MA Type" (SMA or EMA) globally to all three moving average plots to maintain consistency in trend analysis.

How do I access the Triple Moving Average & Elder Impulse indicator? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.