Qstick Indicator

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.

RELATED TERMS
  1. Price Rate Of Change - ROC

    A technical indicator that measures the percentage change between ...
  2. Ease Of Movement

    A technical momentum indicator that is used to illustrate the ...
  3. Signal Line

    A moving average plotted alongside a technical indicator and ...
  4. Disparity Index

    A technical indicator that measures the relative position of ...
  5. Chande Momentum Oscillator

    A technical momentum indicator invented by the technical analyst ...
  6. N

    A Nasdaq stock symbol specifying that it is the company's third ...
Related Articles
  1. Markets

    These 28 Companies Just Became Very Important

    Only 28 companies are driving 50% of U.S. profit, and only one of them has delivered consistently on revenue, net income, and stock appreciation.
  2. Markets

    How to Find Quality Stocks Amid the Wreckage

    Finding companies with good earnings and hitting on all cylinders in this environment, although possible, is not easy.
  3. Trading

    How Do You Use the Stochastic Oscillator?

    A stochastic oscillator is a technical momentum indicator that compares a security's closing price to its price range over a given time period.
  4. Markets

    Should You Short These Debt-Laden Stocks? (PBI, FTR)

    These stocks have high debt-to-equity ratios making them prime candidates to short.
  5. Trading

    The Four Most Common Indicators in Trend Trading

    Here are the top indicators and tools trend traders use to establish when trends exist and find entry/exit points.
  6. Markets

    Top 5 Gold Mining Stocks (ABX,NEM,AEM,GOLD,KGC)

    These five gold mining stocks have been performing well. Here's how they look on a fundamental basis.
  7. Markets

    Top Healthcare, Medical Equipment Stocks of 2015

    A short list of the top healthcare and medical equipment stocks of 2015.
  8. Trading

    A Primer On The MACD

    Learn to trade in the direction of short-term momentum.
  9. Trading

    Technical Analysis: Indicators And Oscillators

    By Cory Janssen, Chad Langager and Casey MurphyIndicators are calculations based on the price and the volume of a security that measure such things as money flow, trends, volatility and momentum. ...
  10. Markets

    The Effective Annual Interest Rate

    The effective annual interest rate is a way of restating the annual interest rate so that it takes into account the effects of compounding.
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. 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 >>
  5. 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 >>
  6. How do I adjust the rule of 72 for higher accuracy?

    Read about the Rule of 72, why it is only an approximation, and how the Rule of 69.3 can be substituted in for more accurate ... Read Answer >>
Hot Definitions
  1. Glass-Steagall Act

    An act the U.S. Congress passed in 1933 as the Banking Act, which prohibited commercial banks from participating in the investment ...
  2. Quantitative Trading

    Trading strategies based on quantitative analysis which rely on mathematical computations and number crunching to identify ...
  3. Bond Ladder

    A portfolio of fixed-income securities in which each security has a significantly different maturity date. The purpose of ...
  4. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  5. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  6. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
Trading Center