# Elder Impulse System The Elder Impulse System colors each price bar by combining the slope of a 13-period EMA with the slope of the MACD histogram: green when both rise, red when both fall, and neutral when they disagree. It condenses trend direction and momentum agreement into a single bar-color overlay. This is the plain, unmodified version of the system with its standard EMA 13 and MACD histogram inputs. - Indicator in the LuxAlgo Library, by LuxAlgo, published Apr 13, 2020. - Access: free. - Concepts: [Elder Impulse System](https://www.luxalgo.com/library/concept/elder-impulse-system/) (primary) - Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=pvts1icrn9ssitieaxhqzlzq - Page: https://www.luxalgo.com/library/indicator/elder-impulse-system/ The **Elder Impulse System** colors every price bar by the agreement between trend and momentum: green when both a 13-period EMA and the MACD histogram are rising, red when both are falling, and a neutral color when they disagree. Alexander Elder's design is a veto rather than a trade call: each color rules out one side of the market, keeping entries aligned with pressure that is actually building. This build is the plain, unmodified system: the trend component is the slope of an EMA of closes, the momentum component the slope of the standard MACD histogram (12, 26, 9), applied as a bar-color overlay (no separate pane, no extra logic). ## How to Trade the Elder Impulse System? - **Green bars**: EMA and histogram both rising: longs permitted, shorts off the menu. - **Red bars**: both falling: shorts permitted, buying off the menu. - **Neutral bars**: the two disagree; either side is allowed, or stand aside. - **Flip to green after red or neutral**: upward pressure has re-aligned, a continuation prompt that still needs its own entry trigger. - **Green degrading to neutral**: agreement behind a long is dissolving. Many plans tighten stops or take partials. It also works as a higher-timeframe gate: weekly color restricting daily trades. Alert conditions fire on each state change: turned green, turned red, turned neutral. ## Elder Impulse System Settings - **EMA Length** (default 13): the trend EMA on closes whose bar-to-bar slope supplies the trend component; longer is stickier, shorter flips states more often. - **MACD Fast Length** (default 12) / **MACD Slow Length** (default 26): the fast and slow EMAs of the MACD line; widening the gap emphasizes slower momentum swings. - **MACD Signal Length** (default 9): the EMA of the MACD line that defines the signal line (histogram = MACD minus signal); longer smooths the histogram. - **Bullish/Bearish/Neutral Bars**: the three style inputs set each state's color. ## Frequently Asked Questions ### Is the Elder Impulse System a buy/sell signal? No. Green does not command a purchase. It takes the short side off the table, and red does the reverse. Entries, exits, and sizing still come from your own rules; the color decides which of them you may currently act on. ### Should I change the default 13 / 12-26-9 settings? The defaults are Elder's published configuration. Longer EMA or MACD lengths give steadier colors with later changes; shorter ones catch turns earlier at the cost of neutral flicker in chop. ### How do I combine it with other tools? Use the color as a filter: take pullback or breakout entries only where the color allows, and let a higher-timeframe color gate the timeframe you execute on. Support/resistance or divergence work supplies the entries the system deliberately does not. ## Related indicators - [Internal Candle Strength](https://www.luxalgo.com/library/indicator/internal-candle-strength/) (Balance of Power): markdown at https://www.luxalgo.com/library/indicator/internal-candle-strength.md - [Pretty Good Oscillator](https://www.luxalgo.com/library/indicator/pretty-good-oscillator/) (Momentum & Oscillators): markdown at https://www.luxalgo.com/library/indicator/pretty-good-oscillator.md - [Gator Oscillator](https://www.luxalgo.com/library/indicator/gator-oscillator/) (Momentum & Oscillators): markdown at https://www.luxalgo.com/library/indicator/gator-oscillator.md - [Wave Trend Oscillator](https://www.luxalgo.com/library/indicator/wave-trend-oscillator/) (Momentum & Oscillators): markdown at https://www.luxalgo.com/library/indicator/wave-trend-oscillator.md - [Traders Dynamic Index](https://www.luxalgo.com/library/indicator/traders-dynamic-index/) (Momentum & Oscillators): markdown at https://www.luxalgo.com/library/indicator/traders-dynamic-index.md - [Center of Gravity](https://www.luxalgo.com/library/indicator/center-of-gravity/) (Momentum & Oscillators): markdown at https://www.luxalgo.com/library/indicator/center-of-gravity.md - [QQE Weighted Oscillator](https://www.luxalgo.com/library/indicator/qqe-weighted-oscillator/) (QQE): markdown at https://www.luxalgo.com/library/indicator/qqe-weighted-oscillator.md - [5/35 Oscillator](https://www.luxalgo.com/library/indicator/5-35-oscillator/) (Momentum & Oscillators): markdown at https://www.luxalgo.com/library/indicator/5-35-oscillator.md --- Source: https://www.luxalgo.com/library/indicator/elder-impulse-system/ (LuxAlgo Library). Free to use with attribution: https://www.luxalgo.com/library/license/