Qstick Indicator
Candlefocus EditorThe QStick is calculated from the difference between the opening and closing prices of the previous day, but expressed as a moving average, i.e. the moving average of all closing-opening price differences over a period of time. In other words, the QStick is a measure of the average range of the daily prices.
A rising QStick usually indicates that the price is likely to close further above where it opened for that day, on average. Similarly, a falling QStick usually signals the price is likely to close further below where it opened for that day, on average.
The QStick provides traders with signals that guide rather simple trading strategies. For example, traders can use QStick crossovers at signal or zero lines as trading signals. A “signal line crossover” occurs when the QStick crosses its moving average, while a crossover at zero line occurs when the price moves above or below its midpoint.
Traders may also use the QStick divergence to detect price momentum. A divergence occurs when the price moves in the opposite direction to the QStick. In other words, when a stock or currency pair’s price is rising, but the QStick falls or vice versa, it's indicative of an impending trend.
In addition, traders can take a longer-term view of the trend by using the QStick to identify long-term trend reversals. When the QStick is placed over the price chart, a reversal occurs when the indicator moves to higher or lower levels than the recent 10-day period.
Overall, the QStick can be used in a variety of ways to identify short-term and long-term price movements. In addition to the signals discussed above, traders can also use the QRStick for trend recognition and support/resistance identification. As with all indicators, it’s important to realize that the QStick does not offer a guarantee that prices will move in any particular direction. However, it does offer a valuable tool for traders looking to trade with greater accuracy.