Description
The Impulse study is a bar coloring system based on two indicators: EMA and MACD Histogram; for MACD Histogram, values (12, 26, 9) are used as input parameters. A bar is painted green if both MACD and EMA values are higher than those of the previous bar. A bar is painted red if both MACD and EMA values are lower than those of the previous bar. A bar is painted blue if neither of the two conditions is fulfilled.
Green and red sections of the colored plot can be considered bullish and bearish segments of the indicator, respectively; blue sections are deemed neutral. A Buy signal occurs when the price is in long-term uptrend (usage of 65 period EMA for detection is suggested), and the Impulse turns bullish on the intermediate trend. The Sell signal is suggested when the price is in long-term downtrend, and the Impulse turns bearish on intermediate trend.
Input Parameters
| Parameter | Description |
|---|---|
length
|
The number of bars used to calculate the EMA. |
paint bars
|
Defines whether or not to apply the coloring to the price plot. |
Plots
| Plot | Description |
|---|---|
Bullish
|
The bullish section of the system. |
Neutral
|
The neutral section of the system. |
Bearish
|
The bearish section of the system. |
Example*
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.