The more that I learn of it, the more that I like it. Does anyone else here use it?

Here's the ChartSchool article on it:

My Macd is set up at 1,65

Always willing to learn more.


asked Aug 30 '11 at 10:05

Trade_to_Live's gravatar image

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edited Sep 03 '11 at 14:06

chipa's gravatar image

1.8k 3240

I use it and love it! I won't go back to regular candles again.

Combined with Elder's triple screening it is a very powerful tool.

I use Linda Linda Raschke's 3,10 MACD

Here's an example:


Cheers :)


answered Aug 30 '11 at 10:10

Love_To_Trade's gravatar image

6.1k 1918


Here is more on the Linda Raschke's 3,10 MACD



(Aug 30 '11 at 10:20) Trade_to_Live Trade_to_Live's gravatar image

Hey LTD, I like this chart and trying to figure out how you use it. How are you using MACD(3,10,16) here while the Elder Impulse displayed (provided by SC) is based on MACD(12,26,9). They are giving different Impulse signals, yes? Or are you using the MACD(3,10,16) for a signal other than Impulse? Thx! /rob

(Apr 16 '12 at 00:03) rawb rawb's gravatar image

I do. I do not think of it as a system, so much as a lot of common sense about the psychology of trading, developing a trading plan (don't trade without one), money management, record keeping (required), technical indicators and how to use them, and more. It is not revolutionary, just an emphasis on discipline, learning from mistakes, and taming the ego. I could do better with it, but am improving.


answered Aug 30 '11 at 11:22

pollyanna's gravatar image

261 15

That's exactly it pollyanna! Trading is a lot about improving yourself. Finding your journey especially with a plan.

I never was a surfer but trading is the next best thing ;)

Cheers :)

(Aug 30 '11 at 12:22) Love_To_Trade Love_To_Trade's gravatar image

I use Elder stuff regularly (and the chart settings). I have nearly all his books. He was a big influence in my shift from fundamental investor to technical trader (along with others like Alan Farley, Van Tharp, etc). Actually, I think it was Farley who I first learned to use fib numbers on my chart indicators, but Elder obviously does this also frequently.

I also agree with Todd about Linda Raschke, but I use the 10,16 MACD on those charts. Here is one of my currency charts using the settings she personally uses and recommends.



answered Aug 30 '11 at 23:44

Anonymous's gravatar image

7.3k 38

If you are day trading a 5 min chart, the 15 min chart governs the 5 minute chart. Only trade in the direction of the 15 min chart. You must have at least a blue candle on the 15m to trade the 5m.

If you are swing trading the weekly chart governs the daily chart. Again you must have a blue candle on the weekly chart to trade the daily chart.

Here's an example of SPY weekly. Notice how you wouldn't be allowed to go long until last week. Keeps you out of a whole lot of trouble with low probability trades.

link text

Hope this helps


answered Aug 31 '11 at 14:05

Love_To_Trade's gravatar image

6.1k 1918

edited Aug 31 '11 at 14:06

Thank you, LTT, for your thoughts on A.Elder's Impulse System. I am curious as to why you said 'the 15 min chart governs the 5 min chart'. Somehow I got stuck in my mind that the governing chart should be 5 times the trading chart. I would appreciate your comments. thanks, six

(Sep 27 '11 at 03:32) six six's gravatar image

@Love_To_Trade: From what you said here about Elder Impulse System, if you are a Swing trader you would not trade the daily chart unless there is at least a blue candle on the weekly chart. Two questions.

  1. Would you use Elder candles or regular candles on your daily chart?
  2. Would you use Elder candles on a 60 min chart? Thanks.
(Jan 05 '12 at 20:52) Bob S Bob%20S's gravatar image

Elder Impulse Bars are awesome. I have used the very successfully for several years now. They are worth learning about if you don't know about them. Trade-to-live posted the ChartSchool link here already.


answered Aug 30 '11 at 10:55

parabox's gravatar image

2.2k 311

I just wanted to add that the Elder Impulse System also helps you pull the trigger. Some traders have a real problem with this sometimes.

I do once in a while ;)



answered Aug 30 '11 at 10:18

Love_To_Trade's gravatar image

6.1k 1918

edited Aug 30 '11 at 10:18

The Elder bar colors are nice, but I find that candlesticks give a better visual representation of price action. Sometimes I use candlesticks for shorter term charts, but refer to a longer term Elder bar chart for comparison. I do like the 3,10 MACD as a momentum indicator.


answered Aug 30 '11 at 13:01

CasualTrader's gravatar image

635 39

Here is a chart that I like to use for Elder


Same chart with candlesticks




answered Aug 30 '11 at 23:32

Trade_to_Live's gravatar image

2.0k 11827

Good stuff TTL !

Like Elder says the Impuse System makes order out of chaos.

Cheers :)

(Aug 30 '11 at 23:43) Love_To_Trade Love_To_Trade's gravatar image

Here is how I use the Elder bars. I like to use a 60 min chart and I always show Elder bars with candles. Notice that during the rally all Elder bars were either Green or Blue, yet there were times during the rallt where the candle was red.....that is a buy or add to your position or just stay with your long position. I use the other indicators for a sell signal. see chart. http://stockcharts.com/h-sc/ui?s=$SPX&p=60&yr=0&mn=1&dy=15&id=p10097393818&a=243811693


answered Sep 27 '11 at 06:12

Tango's gravatar image

845 11118

I would think Chip would need to get permission from Dr. Elder as the "auto envelope" is probably proprietary. I wonder if Stockcharts can be listed as software compatable with the Elder software, such as Tradestation and Metastocks are presently? Chip would need to handle that one too.


answered Aug 26 '12 at 16:17

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Asked: Aug 30 '11 at 10:05

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Last updated: Aug 26 '12 at 16:17