In this paper, first the theory of Improved Applied Element Method (IAEM) is proposed and then an appropriate algorithm and software are developed for analyzing structures behavior until collapse by this method. Then, some examples of structural analysis by the above method and a software developed for this study are presented. The results show that IAEM has the ability to solve the discussed problems more accurately in less time than Finite Element Method (FEM). Moreover, the efficiency of the method for solving large displacements problems is enhanced in this research by introducing nonlinear response indicators. For modification of the stiffness matrix in the nonlinear range, a new method is presented that increases the accuracy of calculation up to 30%.