DEFINITION of 'Qstick Indicator'

A technical indicator developed by Tushar Chande to numerically identify trends in candlestick charting. It is calculated by taking an 'n' period moving average of the difference between the open and closing prices. A Qstick value greater than zero means that the majority of the last 'n' days have been up, indicating that buying pressure has been increasing.

BREAKING DOWN 'Qstick Indicator'

Transaction signals come from when the Qstick indicator crosses through the zero line. Crossing above zero is used as the entry signal because it is indicating that buying pressure is increasing, while sell signals come from the indicator crossing down through zero. In addition, an 'n' period moving average of the Qstick values can be drawn to act as a signal line. Transaction signals are then generated when the Qstick value crosses through the trigger line.

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RELATED FAQS
  1. Why is the Qstick Indicator important for traders and analysts?

    Learn what the Qstick indicator is, how it appears on charts, and how traders and analysts use it to assess buying or selling ... Read Answer >>
  2. What are the best technical indicators that complement the Qstick Indicator?

    Explore a number of related technical indicators, such as volume or moving averages, best used to complement trading strategies ... Read Answer >>
  3. How do I use Qstick Indicator for creating a forex trading strategy?

    Explore the significance of the Qstick indicator and learn a simple forex trading strategy the Qstick histogram can be used ... Read Answer >>
  4. What is a common strategy traders implement when using the Qstick Indicator?

    Learn a common trading strategy that uses the Qstick indicator and is designed to take advantage of major trend reversals ... Read Answer >>
  5. How do I build a trading strategy with the Chande Momentum Oscillator?

    Learn about the concepts behind Tushar Chande's momentum oscillator, including some simple steps you can use to help build ... Read Answer >>
  6. How are moving averages used in trading?

    Moving averages are very popular tools used by technical traders to measure momentum. The main purpose of these averages ... Read Answer >>
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