Thread: Day Impulse Overlay - Vertex FX Indicator

Day Impulse Overlay is a powerful VertexFX client side VTL indicator that gives excellent entry and exit signals.

The main GOLD line is calculated as the cumulative sum of the difference between the Close and Open of each candle over the recent PERIOD candles and is expressed in points.

The signal BLUE line is calculated as the difference between the Close and Open of each candle and expressed in points.

The average WHITE line is the Simple Moving Average over MA_PERIOD candles of the main GOLD line.

The concept behind the DayImpulse2DD indicator is that the relationship between Open and Close prices exhibit deterministic behavior in trending markets. In an up trending market, the Close price is higher than the Open price most of the times. Hence the main indicator is rising. When the uptrend stalls, the Open and Close prices exhibit in deterministic behavior, and hence the indicator moves sideways or downwards indicating an end of the trend.

In a down trending market, the Close price is lower than the Open price most of the times. Hence the main indicator is falling. When the uptrend stalls, the Open and Close prices exhibit in deterministic behavior, and hence the indicator moves sideways or starts moving upwards indicating an end of the trend.

BUY - Enter BUY trade when GOLD line is below the BLUE line, and both lines are below zero. The GOLD line must be rising for at least 2 candles.

SELL - Enter SELL trade when the GOLD line is above the BLUE line, and both lines are above zero. The GOLD line must be falling for at least 2 candles.