Inpulse System

High volatility during the bull market of the 1990s made the momentum trading very popular.

The idea is to jump abroad a fast-moving stock as it begins to run and hop off after it slows down.

 

Entries

The Impulse System flags those bars where both the inertia and the momentum point in the same direction. When both the EMA and MACD-Histogram (below zero) rise, they show that bulls are roaring and the uptrend is accelerating. When both indicators fall together, they show that bears are crushing the market.

 

Using 13-day EMAà tracking market inertia

12-26-9 MACD-Histogramà its slope reflects changes of power among bulls or bears.