Elder Impulse System (EIS) is a pulse instrument of a trend group of indicators. Alexander Elder, an expert and consultant in the field of stock trading, developed the EIS. The author has combined such popular indicators in the trading system as:
- EMA with a period of 13 (to determine the trend);
- MACD with periods of 12 and 26 (to determine the strength of trend).
Indicator is designed to timely determine the current trends and their potency. The instrument has earned its popularity among traders who trade with timeframes 30 minutes. And for good reason. It accurately responds to changes in the market on these temporary intervals, so it helps traders to make informed trading decisions.
Elder Impulse System indicator from broker IQ Option
This instrument is on many popular trading terminals including here. Each user of IQ Option platform can launch and apply this trading system in strategy. How to do it? You can read about it later in this article.
How to launch and configure EIS on trade room?
Trader must perform the following steps in order to launch and configure the indicator in the IQ Option terminal:
- To click on the indicator bar icon to open the corresponding menu.
- To select the “Trend” category.
- In the submenu, to find and to run the Elder Impulse System.
Steps to launch an EIS
Next, the trading indicator settings window will be opened.
EIS Settings Window
Instrument parameters are divided into two tabs.
The first tab is the basic settings block, which includes:
- 2 periods of MACD (the default for fast EMA is 12 candles, for slow one – 26);
- EMA period is 13 candles;
- the period for signal line indicator is 9.
The second is a visual block of settings that allows the trader to choose convenient colours for the indicator elements.
If the user launches the EIS for the first time, it is not recommended changing the main system settings. Otherwise, the indicator may not work correctly and lead to purchases of unprofitable options.
First, the trader needs to test the instrument on demo account, and analyse its work on historical quotes. It is an only way a user can to learn to trade with this indicator.
How to trade with the EIS indicator?
If the trader for some time carefully looks at the system of A. Elder with the price schedule in action, then he can easily deal with the principle of operation of instrument.
The indicator on the IQ Option platform operates within a separate scale under the price chart. Elements of the instrument are the same candles as on the price chart. Green candles, respectively, confirm the uptrend, and red confirm the downward trend. However, on the chart of the instrument there are also grey candles informing the trader about flat.
The operating principle of EIS indicator
Since the EIS is a trend instrument, it does not work correctly in markets with low volatility and during flat.
Trading signals that a user can define when working with an EIS:
- When green candles have formed on the charts of the instrument and prices, the trader needs to actively buy.
- When red candles have formed, the trader needs to actively sell.
- When a grey candle is formed on the indicator chart with open options, the trader needs to close the current deal. This indicates that the current trend is no longer in force and will soon change or continue.
EIS indicator trading signals
Summary
EIS is a simple and convenient trading tool. Grey candle is the key element of the indicator. This is a signal for profitable closing of trading positions. However, the trader is better to additionally use signals of other technical analysis instruments, for a more accurate entry into the market.
NOTE: This article is not an investment advice. Any references to historical price movements or levels is informational and based on external analysis and we do not warranty that any such movements or levels are likely to reoccur in the future.
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