The idea of the impulse system based on Moving Average and MACD Histogram was first offered by Dr. Alexander Elder in his book "Come Into My Trading Room".
You can color bullish and bearish moods.
- Single Moving Average (by default).
- Double Moving Avarage.
- Triple Moving Average.
- true - allow a sound signal.
- false - not allow a sound signal.
- true - to display a signal.
- false - don't show a signal.
The indicator can be used for manual or automated trading in an Expert Advisor.
The trading rules state that you should not sell when bars are blue, and you should not buy when they are red. Unpainted bars allow traders to consider their further actions: buy or sell.
Rules of action: In the beginning it is necessary to wait for a signal of a possible reverse of a tendency (a sound notification may be allowed), and then the beginning of coloring of bar in the same direction (a sound notification may be allowed).
For automated trading, the values of any double type indicator buffer are used:
- for coloring of bars - 0, 1, 2 or 3. The values must not be equal to EMPTY_VALUE!
- for signal of reverse of bulls or bears tendency - 7. The values must not be equal to EMPTY_VALUE!