Contents
Today, I would like to describe the Qstick indicator, an indicator invented by Tushar Chande. IQ 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. What is 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.
Key Takeaways🔑
| →The Qstick indicator, invented by Tushar Chande, helps identify trends and signals in trading. |
| →It measures buying and selling pressure using the Simple Moving Average of the difference between closing and opening prices. |
| →The Qstick indicator is most effective in trending markets but can generate false signals in ranging markets. |
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.
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.
Using the Qstick indicator in trading
Trading signals from Qstick indicator
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.
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.
Pros and Cons👍👎
| 👍Easy to use and understand, with clear trading signals at zero line crossings. |
| 👍Can be used to catch divergences, which can indicate possible trend reversals. |
| 👎Not effective in ranging markets, generating many false signals. |
| 👎Based on historical data, which may result in lagging behind the price. |
| Qstick Indicator Characteristics | Explanation |
|---|---|
| Identification of Trends | The Qstick indicator helps traders identify prevailing trends in the market by measuring buying and selling pressure. |
| Zero Line Crossings | Buy signals occur when the Qstick line crosses above the zero line, and sell signals occur when the line crosses below it. |
| Catching Divergences | The Qstick indicator can be used to spot divergences, indicating possible trend reversals in the near future. |
| Market Conditions | The Qstick indicator works best in trending markets but can generate false signals during ranging markets. |
Catching divergences with Qstick
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.
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!
Q&A Section💡
- Q:What is the Qstick indicator?
- A:The Qstick indicator, invented by Tushar Chande, is a technical analysis tool that helps traders identify trends and trading signals by measuring buying and selling pressure.
- Q:How does the Q
- A:The Qstick indicator uses the Simple Moving Average of the difference between closing and opening prices to measure buying and selling pressure. It generates buy and sell signals at zero line crossings.
- Q:What are the limitations of the Qstick indicator?
- A:Some limitations of the Qstick indicator include generating false signals in ranging markets and lagging behind the price due to its reliance on historical data.
- Q:How can the Qstick indicator be used to catch divergences?
- A:The Qstick indicator can help identify bullish divergences, which occur when the price is falling while the Qstick line is rising, and bearish divergences, which occur when the price is rising while the Qstick line is falling. These divergences can indicate possible trend reversals.