PZ Lopez Impulse MT5
This indicator evaluates volatility and price directionality simultaneously, which finds the following events.
- Decisive and sudden price movements
- Large hammers/shooting stars patterns
- Strong breakouts backed by most market participants
- Indecisive but volatile market situations
It is an extremely easy to use indicator...
- The blue histogram represents the bullish impulse
- The red histogram represents the bearish impulse
- The gray histogram represents the current volatility
- The moving average is the average volatility
- The indicator implements alerts of all kinds
- The indicator does not repaint or backpaint
...with straightforward trading implications.
- You can buy when the bullish impulse exceeds the average volatility
- You can sell when the bearish impulse exceeds the average volatility
This indicator tracks the market volatility and the bullish and bearish impulse for every single bar. If the bullish impulse exceeds the average volatility, it is probably a good opportunity to go long and likewise for shorts. These strong price movements are reliable because other market participants are likely to cover their positions. This indicator, if properly used, is extremely powerful.
Arturo López Pérez, private investor and speculator, software engineer and founder of Point Zero Trading Solutions.