How does the Impulse Trade system work
Please check these topics first.
The impulse trade system is one of the best systems for newbies to start making profit. It is very easy to understand and implement. We would need two indicators for trading on the impulse trade systems, the moving average and MACD.
On the chart above, there are four indicators. Two of them (The yellow and red line) are the main focus. The middle indicators (AC and AO) are there to serve a purpose and to help you understand something, which I will explain as well.
Forex broker fore testing: Profiforex Broker
How to read the signal from impulse trade system
The moving average helps to identify the face of the trend, when the moving average is below the chart and it is rising, it is a bullish trend. If the moving average is above the chart and it is falling, it is a bearish trend.
The MACD indicator is used to estimate the speed of changes. If the MACD histogram is above the signal line, it indicates a good speed of growth. Accordingly if the macd is below the signal line, it indicates a good falling speed.
If the signal of the moving average and the MACD coincides with each other, we open the deal. The deal is closed when one of the signals stop giving a buy/sell signal. Any noise that does not necessarily mean a change in the trend can knock you out of the market.
To understand this better, including how to apply the following indicators you may use the Video or pictorial direction below:
How to apply and understand the Impulse system of Alexander Helder
The impulse trade system won’t allow you take more than 15 to 25 percent of the trend. It is important to open a deal only after identifying the trend on a larger time frame. So, as you can see from below the chart, I opened a trade just to grab a few pips. Since you can only grab a few pips from this trade it is advisable to use a broker with fast execution and low spread.
The two indicators in the Middle are Awesome Oscillator and Acceleration Oscillator. At the moment I wrote this, it produced a Buy signal (two green bar each), but the MVG and MACD produced a Sell signal. However, the MVG and MACD combined together is a stronger force than the AO and AC. So I will prefer to follow the signal by the former. This is because if you switch the time frame to a 4hour time frame, the AO and AC give the Sell signal, while the MVG and MACD remains the same. So Moving Average and the MACD are more reliable.
Never use this system if you tend to show a lack of self-discipline.