Qstick Indicator

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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.

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RELATED FAQS
  1. What are the best technical indicators that complement the Qstick Indicator?

    Some of the best technical indicators to complement use of the Qstick indicator are moving averages, candlestick patterns ... Read Full Answer >>
  2. Why is the Qstick Indicator important for traders and analysts?

    The Qstick indicator is used by traders and analysts to identify trends by providing a numerical measurement of buying or ... Read Full Answer >>
  3. What is a common strategy traders implement when using the Qstick Indicator?

    A common trading strategy traders implement using the Qstick indicator is to try to take advantage of a market reversal signal ... Read Full Answer >>
  4. How do I use Qstick Indicator for creating a forex trading strategy?

    The Qstick indicator can easily be utilized to create a simple forex trading strategy based on directional changes in the ... Read Full Answer >>
  5. What is the difference between technical analysis and fundamental analysis?

    Fundamental analysis and technical analysis are distinct methods used to research and evaluate securities. Fundamental analysis ... Read Full Answer >>
  6. How are Tweezer patterns interpreted by analysts and traders?

    The tweezer is a very common candlestick pattern. Theoretically, this pattern is an indication that the current trend has ... Read Full Answer >>
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