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Pros and cons of using Qstick indicator on IQ Option


Qstick indicator IQ OptionIQ Option offers many technical analysis tools. They are designed to serve you in your trading practice. Thanks to them you will be able to identify the trend, candlestick patterns and the right moment to open and close your position. Today, I would like to describe the Qstick indicator, an indicator invented by Tushar Chande.

Introduction to the Qstick indicator

Tushar Chande's indicator was created to numerically recognise the trend on the chart. It is known as the Qstick or Quick Stick. It is not available in every trading software but you will find it in the IQ Option offer.

The Qstick uses the Simple Moving Average in its calculations. It takes an ‘n' period moving average of the difference between the closing and opening prices.

QStick calculations
SMA is used for the QStick calculations on the IQ Option platform

Adding the Qstick to the IQ Option chart

Log in to your account on the IQ Option platform and click on the Indicators button on the left side. Find the ‘Trend' group of tools under the Indicators tab. Click on it and a new list will unfold. The Qstick should be there.

How to insert Qstick indicator on IQ Option platform
How to insert the Qstick indicator on the IQ Option platform

The Qstick will be visible in a separate window under the price chart. It moves around the line with the value of 0.

The indicator measures buying and selling pressure. When the indicator rises, it is a signal that on average, the price closes higher than it opened. When the indicator falls, the price, on average, closes lower than it opened.

The Qstick indicator on EURUSD 15m chart
The Qstick indicator on the EURUSD 15m chart

Using the Qstick indicator in trading

Trading signals

The Qstick indicator can produce trading signals at the crossings of the signal line with the zero line.

A signal to buy occurs when the signal line crosses above the zero line. That is when there is buying pressure in the market. The selling signal is received when the Qstick falls below zero.

Qstick trading signals
Qstick trading signals from zero line crossovers

The Qstick indicator works best in the trending markets. It can generate many false signals, crossing the zero line frequently, in the times when the market is ranging.

Qstick gives many false signals
Qstick gives many false signals when the market is choppy

Catching divergences

It is also possible to catch divergences with the help of the Qstick indicator. Divergences tell us about possible trend reversal in the near future.

Bullish divergence happens when the price is falling but at the same time, the Qstick line is rising. Bearish divergence is when the price is rising but the indicator is moving down.

bearish divergence on Qstick indicator
An example of bearish divergence on the Qstick indicator

Conclusion

The Qstick is an indicator that takes an average of the difference between the closing and opening prices. It is quite easy to employ and can be used to find a good entry point.

However, it looks at historical data and usually lags behind the price. You may want to use an extra filter to optimise the results.

There is a free demo account on the IQ Option platform. This is an excellent place to practice using a new indicator you have just learned about. Or maybe you have known it before? Tell us about your experience with the Qstick in the comments section below.

Best of luck!

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