To experienced users of the Elder Impulse system for trading: What parameters for entering and exiting a trade have you found most useful using this system. For example do you exit a trade immediately when the daily 13 day ema chart shows a change from a green price flag to a blue, or do you wait until a red price flag is generated or what?
Before choosing chart settings, if you are an Elder follower, you will need your “Triple Screen.” I would suggest starting with hourly, daily and weekly. Personally, I just work from a feel for each chart. For my own trades, technically, I rely more on patterns, drawn lines, and fib level responses to price action (than the signals on the Elder Impulse). I saw a comment once from Elder that he uses 13, 65 and 200 EMA's, so I have been using that as a default chart for myself. Here is an example:
If there is a clear trend, then I favor ADX. If there is not, then I favor an oscillator like RSI. When I place indicators on the chart, I usually shift the setting towards fibonacci numbers (3, 5, 8, 13, 21, 34, 55, etc). For example, on the chart I posted above, the ADX trend is down and the RSI reading is still bearish. However, what is more impressive to me is that second Head and Shoulders pattern developing within the bearish flag and the confirmation of the bearish flag this last week. The next level to watch is the 2011 low near 10604 (kind of like an upside down break out) and then an A = C measured extension on a weekly chart. Here is the A = C extension on a weekly.
Notice that the daily (your primary trading time frame) and weekly (your big picture) charts work together using the Elder-suggested Triple Screen. All you would need to do is form an hourly chart (e.g., your entry) for your trade. Most all of this is discussed in Elder's book, Come Into My Trading Room. However, he does not discuss patterns very much in that book.
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