The Impulse MACD (Moving Average Convergence Divergence) Indicator is a technical analysis tool used by traders to identify trend reversals and potential entry or exit points in the market. It is a modified version of the original MACD indicator, which was developed by Gerald Appel in the late 1970s.
The Impulse MACD differs from the original MACD in a few key ways. First, it uses a different set of moving averages. The original MACD uses two exponential moving averages (EMA) of different lengths to generate its signals, while the Impulse MACD uses a combination of simple moving averages (SMA) and exponential moving averages.
Secondly, the Impulse MACD adds a momentum component to the original MACD calculation. It measures the difference between the MACD line and its signal line and plots that difference as a histogram. The histogram is intended to show the strength of the trend and can be used to identify potential trend reversals.
Finally, the Impulse MACD includes a separate trigger line that is based on a smoothed version of the momentum histogram. When the histogram crosses above the trigger line, it generates a buy signal, and when the histogram crosses below the trigger line, it generates a sell signal.
In summary, the Impulse MACD is a modified version of the original MACD that incorporates a momentum component and a separate trigger line to generate trading signals. While both indicators are useful for identifying trends and potential entry or exit points, the Impulse MACD may be better suited for traders who prefer a more complex and dynamic approach to technical analysis
Remember this video and info is only for educational purposes and is not intended as investment advice.