The Lopez Impulse indicator evaluates volatility and price directionality simultaneously, which finds the following events.
- Decisive and sudden price movements
- Large hammers/shooting stars patterns
- Strong breakouts backed by most market participants
- Indecisive but volatile market situations
It is an extremely easy to use indicator...
- The blue histogram represents the bullish impulse
- The red histogram represents the bearish impulse
- The gray histogram represents the current volatility
- The moving average is the average volatility
- The indicator implements alerts of all kinds
- The indicator does not repaint or backpaint
...with straightforward trading implications.
- You can buy when the bullish impulse exceeds the average volatility
- You can sell when the bearish impulse exceeds the average volatility