Impulse MACD (Monthly)

The Impulse MACD is a modified MACD that is designed to reduce or filter the ‘noise’ shown on the traditional MACD.  The result is a reduction of the back and forth across the zero line or whipsaw effect and the cyclical plotting of the histogram which typical in a ranging or sideways market. This can be very helpful in finding the places where there is no trend and where it might be most advantageous to stay on the sidelines, avoid trading and preserve capital.  It’s simple, if you don’t want to trade in a ranging market, don’t trade when the Impulse MACD is flat.