The impulse volume overlay, is the 2nd part of my 2 part volume impulse indicator. The indicator has the sole purpose of measurearing a signifcant increase in the volume of either sellers or buyers and with the the help of several EMA lines giving perfect entries. Results are very promising even in FOREX market... For now it has only been tested in 5 min charts.
How it works: 1) Check either if the price is in a down or up trend. So if the price is under both 100 and 200 EMA its down, and viceversa 2) If you have a down trend, wait for the overlay indicator to highlight the bars green, when the highlight stops enter a selling position, it is suggested you calculate your stop loss with the ATR. If the trend was going up, do the same with the red highlight. 3) Exit position when you feel like it, furthermore a trailing stop is suggested in order to maximize profit.
I DO NOT TAKE ANY RESPONSABILITY FOR LOSSES. USE INDICATOR UNDER YOUR OWN RISK.