THE NEW TRADING OF A LIVING- THE IMPULSE SYSTEM
THE NEW TRADING OF A LIVING THE IMPULSE SYSTEM The idea for the Impulse system came to me in the mid-1990s. I woke up in the middle of the night in a faraway hotel and sat up bolt upright in bed with the thought that I could describe any market move in any timeframe, using only two criteria: inertia and power. By combining them, I could find stocks and futures with both bullish inertia and bullish power and trade them long. I could also find stocks and futures with both bearish inertia and power and sell them short. A good measure of the inertia of any trading vehicle is the slope of its fast EMA. A rising EMA reflects bullish inertia, while a falling EMA reflects bearish inertia. The power of any trend is reflected in the slope of MACD-Histogram. If its latest bar is higher than the previous bar or less deep than the previous bar, then the slope of MACD-Histogram is rising, and the power is pushing up. If the latest bar of MACD-Histogram is lower than the