Qstick Indicator

AAA

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.

INVESTOPEDIA EXPLAINS '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. Moving Average - MA

    A widely used indicator in technical analysis that helps smooth ...
  2. Candlestick

    A chart that displays the high, low, opening and closing prices ...
  3. Crossover

    The point on a stock chart when a security and an indicator intersect. ...
  4. Indicator

    Statistics used to measure current conditions as well as to forecast ...
  5. Mass Index

    A form of technical analysis that looks at the range between ...
  6. Money Flow Index - MFI

    A momentum indicator that uses a stock’s price and volume to ...
Related Articles
  1. Charts & Patterns

    The Basic Language Of Candlestick Charting

  2. Charts & Patterns

    Candlestick Charting: What Is It?

  3. Forex Education

    Candlestick Charting: Perfecting The ...

  4. Charts & Patterns

    Candlesticks Light The Way To Logical ...

Hot Definitions
  1. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  2. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  3. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  4. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  5. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  6. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
Trading Center