Price impulse
Very accurately shows price wave movements within the local trend👇
Marking of price impulse on the chart
The price momentum replaces all major oscillators such as RSI, MACD, Stochastic, and visualizes not only the direction of price movement much more accurately, but also quality of this wave.
Smoothed waves show each wave taking into account its strength and speed:
Wave color shows the mood of the current wave (green - bullish, red - bearish)
Wave size shows the strength of the current wave (how strong the bulls or bears are)
Dots show the exact moment of wave reversals (🟢green - up, 🔴red - down, the brighter the dot, the stronger the reversal signal)
Purple lines show divergences (discrepancy between price and momentum strength)
Applying price momentum in trading
Waves help understand the strength of bulls or bears and avoid weak and unreliable moves — for example, when a green wave is large and prolonged, it indicates bull strength and entering a short while the wave hasn't diminished is dangerous - the stronger the momentum, the higher the probability the movement will continue.
Dots help determine ideal moments to enter, take profit and add to positions — look for moments when momentum begins to change, confirming the start of a short-term trend.
Opening a position:
In a bullish trend the optimal entry points will be 🟢green dots on the green wave, or the moment the green wave begins when the color changes
In In a bearish trend the optimal entry points will be 🔴red dots on the on the red wave, or the moment the red wave begins when the color changes
Adding to positions:
When momentum is actively increasing you can add to positions on pullbacks to maximize profit from the movement — add to your position when dots of the desired color appear in continuation of the trend (during a pullback the price remains within the current momentum zone).
Taking profit:
If momentum begins to slow against the background of reaching a key price level, the appearance of a reversal dot is a signal to take profit.
First of all, try the simplest trading strategy based on price momentum from the indicator developer
In the example we see how a red momentum turned into green...
Next all 🟢green dots - are potential long trades in continuation of the trend, or zones to add positions.
In the example we see how a green momentum turned into red...
Next all 🔴red dots - are potential short trades in continuation of the trend, or zones to add positions.
In the example of a long trade after strong upward impulses, 🔴red dots - are profit-taking zones, as well as the moment when the wave colors change to red.
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