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.
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.
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.
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!
General Risk Warning: The financial products offered by the company carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose
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