The Elder's Impulse System is a widely used technical indicator that helps traders identify potential trading opportunities by detecting impulsive price movements. Developed by Larry Williams in 1989, this system has been a staple in many trading strategies.
How the Elder's Impulse System Works
The indicator generates two lines: the Line of Strength and the Line of Weakness. The Line of Strength is drawn from the high of the first impulse wave, while the Line of Weakness is drawn from the low of the first impulse wave.
These lines are used to identify potential trading opportunities. When the price breaks above the Line of Weakness, it can be a buy signal, and when it breaks below the Line of Strength, it can be a sell signal.
Benefits of Using the Elder's Impulse System
The Elder's Impulse System offers several benefits for traders. Firstly, it helps to identify momentum and impulse trades, which can be highly profitable. Secondly, it allows traders to enter and exit trades at optimal points, minimizing losses.
Additionally, the system is relatively easy to use, making it accessible to traders of all levels. However, it's essential to note that no trading system is foolproof, and traders should always combine this indicator with other forms of analysis for better results.