The New Sell and Sell Short: How to Take Profits, Cut Losses, and Benefit from Price Declines, Expanded Second Edition

Question 84—The Impulse System

Figure 6.84

The Impulse system tracks both the inertia and the power of market moves. Some software packages allow traders to color price bars in accordance with the Impulse reading. Even on a black-and-white chart, a trader can tell what color any of the bars should be in accordance with the Impulse rules. Please match the following comments on the Impulse system with the letter bars on the chart:

1. Impulse Green—buy or stand aside; shorting not permitted

2. Impulse Red—sell short or stand aside; buying not permitted

3. Impulse Blue—no position is prohibited