QQE Indicator

QQE is an abbreviation for QQE, which stands for Qualitative Quantitative Estimation. It is a derivative of the RSI and is enhanced by the use of smoothing techniques. Contrary to most indicators, it has stood the test of time in terms of volatility.

QQE Indicator

Trend Trading

This indicator can be used to identify the direction of the market. In the case of an index rising above the 50 level, this is a sign of an upward or bullish market. Therefore, you must be looking to buy. This means that you can use the indicator to filter trades and open long positions when the indicator exceeds the 50 value threshold and short positions when it is lower.

Overbought, oversold and overpowering positions

You can use this indicator to determine if the price is in an overbought or oversold position. When the indicator reaches the 70 level, it indicates a solid market and is ideal for long term positions. You may also consider taking a short term position when the indicator moves towards a negative value.

Divergence

This indicator is able to detect divergences in price and momentum. For example, a bullish divergence is when the Qqe indicator makes a higher low, yet price falls to a lower low. This may indicate an impending bullish reversal.

A bearish divergence is observed when the Qqe keeps trying to plough lower highs while the price sets higher highs, indicating a possible bearish reversal.

In addition, if the bold line is crossed by a trailing line, this indicates that momentum is shifting. If the bold line crosses above the trailing line, which is slower, this is a clear sign of bullish momentum. Likewise, if the smoothing line is below the trailing line, this is a sign of short-term downward momentum.

QQE Indicator

Trading example

The green horizontal line (smoothing RSI) gives a clear view of the price movement. If the price is moving up, it does not slow down. It also decreases with a downward movement. Note how price reverses after hitting the overbought and oversold zones.

The indicator gives a sell indication in the event that the green line crosses the red line in the middle, as illustrated by the red arrow. When the price starts to rise, the green line crosses the red line. Once these two lines cross, the price shows a clear upward trend.

Conclusion

It is the Qqe indicator is one of the most reliable indicators. It has a range of strategies to take advantage of sell and buy signals. Essentially, it will assist in detecting trend reversals and help you enter the market at the most appropriate position.

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