Elder impulse

Elder impulse system

okay so please understand this is not a setup in itself this will actually help you to increase
the probability of Trades

what is Elder impulse system

I will explain explain that but before that why you are using or why you are doing what you
do that you need to understand so why you're using Elder impuls is basically we are using
this to increase the probability of the existing setup

so we have some setup for example we have the camarilla pivot setup so we trade based on
camarilla S3 R3 so here when we take the trade how to increase the probability we have
discussed multiple rules to increase the probability 20 ma 200 MAA we discussed about
vwap we discussed about Gap and other things similarly this is going to increase the
probability of the trades that you're taking at your support resistance level okay and
breakout breakdown levels also so let's look at other setups also.

we'll discuss we can see 20 MAA and 200 EMA setup so whenever you take trades based on
this still we can use this any support resistance trades keep this in mind okay any support
resistance base trades what and how we use this we use this to increase the probability of
that particular trade whether it is vwap or super Trend or vwma we are going to discuss
that later vwma or CPR or virgin CPR trades all these are taken by considering this

we may avoid this sometimes that is up to individual preferences it is only to increase

probability sometimes you may miss a trade but it's okay but if you're trying for I mean but
you're trying for maximum probability so please understand this word trading is all about
probability every single trade is a probable trade every single trade is an independent event
and nobody can predict any event accurately

okay so please understand that and when we trade we need to have three knowledge about I
mean knowledge about three different Dimension we need to know the trend first and we
need to know how the price is acting that's price action and we need to know momentum on
which side so this three is what we need to know especially as an option buyer you cannot
go against the trend what will happen you will suffer heavily with the premium DK you
cannot go against the price action the same will happen you cannot go with against a
momentum you will suffer heavily with the Decay you maybe um you you may think that yes
it may come down or it may go up but if it is taking time you will suffer heavily with the time
Decay so we are never going to go against the trend not even in your dream you will go price
action you will never ever go against it so do not go ever against the momentum so these are
the three things that we need to keep in mind so we should be following the trend we should
follow the existing price action we should follow the direction in which you are having
momentum in the market that's when as an option buyer you will be getting rewarded so
these are the three key points that you need to keep in mind Trend should be your friend
always and price action you should definitely follow and momentum okay now to identify
Trend we have different setups see just just let's take vwap if it is above vwap we have a clear
uptrend if it is below vwap clear downtrend if we are talking about intraday above VAP is up
uptrend below VAP downtrend similarly 200 EMA we tell you if it is above 200 EMA
uptrend below 200 MAA downtrend for a shorter time period you can even look at 20 ma
also above 20 ma uptrend below 20 ma downtrend similarly super Trend all these whatever
you're using 20 ma 200 EMA vwma super Trend VAP CPR all these are basically the trend
indicators okay CPR above CPR it's uptrend below CPR it's downtrend so I'm expecting that
you're getting this points and most of you already know this so Trend we need price action
we need to understand momentum we need to know on which side that's that's when you will
be able to make money you need to go with the momentum never against the momentum
never ever against the momentum you will suffer heavily with the time Decay now if you
look at Elder impulse

Elder impulse is actually giving a convergence or Divergence between the price and the
momentum
okay so Elder impulse is basically giving you whether the momentum and the price is
converging means whether they are together or diverging sometimes price is going upside
but momentum may not be there that is what Divergence sometimes price may go downside
but momentum may not be there so that's what again Divergent
okay so if you see sometimes price is going up momentum is also going up that is when it is
converging so both need to be together now if you look at Elder impulse system how it is
giving you the convergence and Divergence is basically using 9 EMA and macd so in simple
terms Elder impulse is nothing but it is giving you the convergence and the Divergence
between the 9 EMA and macd
if 9 EMA is telling you bullish and macd is also telling you bullish then you will be definitely
buying okay that means price is above 9 ma that means uh bullish MSD is also telling you to
buy then this is buy here you have a convergence that means there is no issue okay so
sometimes 9 ma will tell you to buy but macd is not showing the momentum on the downside
this is what I mean Divergence
so here the Divergence so there is an inaction or indecision here there is indecision here it is
decisive by here there is indecision
okay now what is the next possibility there are only four possible scenarios just like we
discussed the camap evot where I discussed seven possible scenarios just like you know uh
any aptitude exam we made it very clear these are the nine I mean seven cases
and these seven cases these are the scenarios these are the trades that you need to take just
like that here also we
have four different cases now let's say 9 EMA is coming down means below that and telling
you to sell and MD is also
telling you to sell then MD is also showing the momentum I said momentum
okay and then you need to sell so here also it is Convergence both are telling
you to sell Ms is also indicating down and 9 EMA is also indicating down so
what is the next scenario 9 EMA is telling you to go on sale but MCD is
also or telling you to buy so this is again Divergence so what do you mean by
Divergence I hope it is clear that both are going against the price and the momentum is going
against this is when indecision okay so this is what indecision now let's look at the decisive
candle let's
look at first decisive candle that is buy so here you will be getting a candle
like this green candle now you are asking me many times why in your chart
you are seeing three color candles apart from Red apart from Green there's a purple color also
so what I'm going to
explain here so you have a green color here so what is this this is a decisive
C candle what is the decision here buy now will you sell after seeing this candle
no it is a decisive candle now what about this decision selling what you'll
be getting you will be getting a red candle so it is again a decisive candle
so we have 9 EMA and macd converging in two scenarios first scenario is this
where you will be buying second scenario is this where you will be selling and in
case of buy you will be getting a green candle in case of sell you will be getting a red
candle this is perfect I hope this much you understood now how about this situation so in case
of first scenario you will be buying and in case of second scenario you will be selling now
what
about the third scenario okay so here 9 EMA is downside so you might be getting
a red candle like this but if you see inside that there will be like a purple
color so candle should be if you look at the plain chart it will be maybe red but
inside that you will be seeing a purple color what does this mean this means
indecision what is indecision 9 EMA and macd is not in the same line one is
telling you to buy the other is telling you to sell so this is what in cive
candle okay now when we take remember this when we take support or resistance
trades what kind of candle we need is we need indecisive candle okay I repeat
when we take support resistance trades we need indecisive candle we need purple color so
here also if you see in the Naked Eyes maybe it is green color but inside that you'll be is
seeing purple so what is this this is indecision though the price is going up but the momentum
may not be there we won't try
that trade we won't that try that on the buy side green color price is going up momentum is
also on the upside we go for buy if it is resistance level we won't do that so same way price
coming down
momentum is also on the downside red candle we'll go for sell purple candles

we should do nothing basically but we

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use that how we are going to use that now let me tell you let's say we have
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a let's say we have this R3 okay and then we have this
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S3 now let's look at this situation first where you should not try I'll tell
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you we are looking for a rejection trade the price is coming like this and once it came here
what are the three
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possibilities you got a green candle like like this now what is this telling you as per Elder
impulse is what I'm
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discussing what is this telling you the price is telling you to buy and macd
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momentum is also telling you to buy will you go against this by taking a p trade
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you should not do that you should not do that so when the price is telling you to
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buy momentum is also on the buy side you should not go for p we will wait
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we will wait if you get a breakout now two scenarios are there if you get a breakout with
volume then we can look
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for a breakout trade here because moment is continuously in favor breakout can
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give you a huge and good points so okay then we will wait for a breakout trade now if we
need to take a p breakout
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means we have to go with C trade now if we need a p trade the situation uh
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should be this here I should get a rejection and this green candle this green candle low need
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to be broken this green candle low need to be broken and this can be with a red candle
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or it can be with a there can be a candle which is like
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this red inside that there can be a purple also so you no need to have any confusion at next
candle whatever be the
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next candle whether it is a red candle or a it's a purple candle which should break the low of
the previous
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candle it cannot be a green candle of course these are the two possibilities any of this whether
an indecisive candle
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is coming which is breaking the low or a decisive red candle is coming which is again
breaking the low you should try a
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PE at this level I hope this is clear so once the
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price come here with a green candle we will just wait so that's what Elder impulse is telling
you only issue with
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this your stop- loss is slightly wider because your stop- loss have the this distance you cannot
take a trade right
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at R3 so that's a disadvantage here but it increase the probability of your
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trade now what's the next scenario the price comes here you get a rejection
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like this with a purple color without thinking anything you can definitely take a PE trade so if
you are getting a
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indecisive candle at your support indecisive candle I'll write here
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indecisive candle at your support here or resistance take
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trade if you're getting indis of candles at support or resistance take trade if
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you're getting a decisive candle means green candle or red candle you have to
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wait for next candle to close the high or low of the previous candle so in this
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case you you need to see the low is clossed if it is here you're getting a red candle which is a
decisive candle
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decisive candle means what you need to do wait this is a decisive candle wait
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wait wait for what wait for a green candle to
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break the high this high of this candle to be broken
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or you can also wait for it can be a purple also no need to
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be exactly green green is very good if it is purple whatever next candle should break this
level that's when you'll be
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taking a trade so what are the two possibilities you get a decisive candle or indecisive candle
if it is a decisive
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candle you can take the trade only after getting another candle which is breaking
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high or low of the decisive candle perfect but if you're getting an
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indecisive candle like this here but the moment you see an indecision because the
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candle is coming the momentum was there but once it reached here if it is indecision then the
possibility of going
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up from here is good going down from here is good so take a PE trade here take a c trade here
I'm talking from the
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perspective of a buyer if you are a seller the opposite you need to
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do so I hope you got the idea about Elder impulse system Elder impulse
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system is nothing but it is giving you the price
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versus momentum Divergence or convergence if it
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is converging that is what decisive that means if you're getting a green candle
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or a red candle what you need to do you need to wait for the next
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candle that's it and the next candle should be breaking the law of the green
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candle or high of the red candle to take a trade
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so I'll just give you one more example

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R3 so what do you need to do you need to wait wait for what next candle should be
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breaking the LW this is where you will be entering a
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p byy p and if you are a seller sell C so I'm not talking about
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this if you're a seller you already know what to do so I don't want to discuss very basic things
okay so buy PE
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here this can be a pure red candle or it can be a purple candle
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also that's why I'm making this Holo candle okay any candle it's okay so this
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is what you need to do once it comes to R3 now guys it can be R3 or when we
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discuss about vwap trade the same it can be vwap or it can be 200 EMA any
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rejection trade that you're trying this is the scenario these setup I'll discuss later Elder imp is
applied in this way
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in all the setup Now by once it comes here you're getting
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a rejection candle like this or whether it is the color does not matter like uh it can be a candle
what's
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comes here it can be a green candle or it can be a red candle but the
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candle is turning out the red candle inside uh you that you can see through your Naked Eyes
may give you green
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candle okay through your naked eye may give you red candle but if the color in
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the alter impulse is purple then you can easily from here itself you can buy P
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buy PE means sell C both are considered the same with a view not the same with
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the time Decay or other thing don't misunderstand in that way but I'm just telling you by P
sellers can do
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accordingly okay so what is this this is what what I mean by decisive candle here
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the indication is buy so we will not sell we will wait for that level to be
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broken here there is indecision 9 EMA and uh uh macd the momentum and the
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price is going against here so here we can take a trade against means R3 is
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going to give a rejection this is a higher probable trade
okay what is the next scenario
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here I have my S3 support trade or let's say it can be a vwap support or it can
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be a 200 EMA support or it can be a CPI support any support rate that you're taking let's say
the price comes like
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this what is this candle red candle this is a decisive candle so when I said
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decisive candle what is the decision Here Sell so will you be buying a call here no you will
wait so what you'll do
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you will wait you have to wait wait for what wait for the next candle and the next candle
should should be a green one
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inside that it can be a complete green or it can be a
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purple no issue where will you buy when the high of the red candle is broken
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here you will be buying a c buy C or sell PE I'm talking only from buying
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perspective now because I'm assuming sellers should know this very well okay so this is a
decisive candle
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at the support now what is the next one I am getting a indecisive candle it can be something
like this or it can be
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something like this any purple candle purple candle the color can be okay look at this color
the color can be red
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inside that purple the color can be green inside that purple so what is this all these are
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indecision what is indecision price and momentum is going against price is trying to go down
but momentum is not
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there what do you need to do the moment you see this you can buy C what is what
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is the difference between these two the difference between these two is that the first case you
need to wait when you're
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waiting your stop loss is going to be this slightly higher this much will be the stop loss
because your stop loss is
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here so your stop loss is slightly wider but here you're not waiting or entering
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faster so your stop loss is less so when you get a indecision candle the stop
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loss is less this is a trade that you can try most often this you need to take
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a choice whether to go for it or not so I prefer to enter on support
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resistance trades with indecision candles with purple candles and if I get the red candle I will
look for a
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breakdown breakdown opportunity similarly when I when I get this uh

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green candle when I get this green candle I look for breakout opportunity
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instead of rejection trades support trades all right guys so I hope this is
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very clear if you want I can repeat what I discussed is Elder remble system I
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told you it's about the probability all the trades are independent trades all
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events you know you can you need to consider all as independent event the trades are based
on probability some
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trades are higher probable like camela S3 R3 trades you get higher probability trades what is
in your hand is increase
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the probability of the trades for that we use the El Trimble system and El
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Trimble is actually helping you to increase the probability so it will tell you convergence and
Divergence between
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the price and momentum means we need to know the trend we need to know already we are
going with the trend but when we
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are uh taking the reverse trades we are going against as of now we look at these
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two because we are using these to take support resistance trades okay so sometimes you will
go against a trend
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all also so what we discussed is we need to
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go this 9 em and macd we need to understand these are the four different
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situations you can get three different candles you can get a you can get a red
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candle at support resistance you can get a green candle at support resistance or
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you can get a green candle you can get a red candle but inside that
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it should be it will be purple so these two are your indecision means 9 EMA and
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macd are not in convergence these are your decisive
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candles 9 Ma and macd
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converging so here what you need to do is you need to think about sell here what you need to
do is you need to think
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about buy so when I say sell means in future Futures as an option buyer sell
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means P buy buy means C buy as an option buyer C
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buy or P sell P buy or c e sell as an

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option buyer this is indecision this is a candle that I'm supposed to get at my
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resistance and support level to take the trades if I am getting
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a dis decisive candle at my support resistance I should be waiting for the next candle to break
the high or low of
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the previous candle this is all about aler impulse and this is the rule that
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you need to follow okay
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now the examples and everything I'll discuss in the coming session
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this is the theoretical part let's complete this theoretical part and then we can discuss the
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examples
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so guys so next we will discuss the RSI based strategy so please remember RSI