Description

What is the QQE Indicator? QQE stands for Qualitative Quantitative Estimation. It’s an indicator that helps traders predict market trends. It’s made by improving RSI with smoothing. QQE is reliable even during volatile times, like after the 2008 financial crisis. It doesn’t delay and hardly gives wrong signals.

QQE lines for alert indicators have a built in alert system which keeps the traders notified whenever a trade is entered, opened, closed or whenever a stoploss or takeprofit is hit. It notifies the trader by sending alert notifications via messages, emails and sound alerts. So that traders don’t miss out on any trade.

Trend Identification

The indicator helps figure out if the trend is going up or down. When the indicator is above 50, it means the trend is going up. So, it’s a good time to buy. You can use the indicator to decide when to buy or sell: go long (buy) when it’s above 50 and go short (sell) when it’s below 50.

Overbought and Oversold Conditions

You can use the indicator to identify when the price is on oversold and overbought positions. Therefore, when the indicator surpasses the 70 levels, it is a sign of a strong market perfect for a long position. Similarly, you can take a short position if the indicator goes towards negative values.

Formula

Wilder’s smoothing = Previous MA value + (1/n periods * (Close — Previous MA)).

How to Trade with the QQE Indicator?

The green line (smoothed RSI) shows how prices are moving. When prices go up, the green line goes up quickly too. And when prices drop, the green line goes down too. Notice how prices change direction after hitting high or low points.

When the green line crosses below the red line, it’s a signal to sell (marked by red arrows). Likewise, when the green line crosses above the red line, it shows prices are going up. After these lines cross, prices tend to move strongly in one direction.

Features

Here are some features offered by QQE Indicator

• Momentum Oscillator: Similar to the Relative Strength Index (RSI), the QQE is a momentum indicator that measures the speed and strength of price movements. It helps identify potential overbought and oversold conditions.
• Volatility-Based Trailing Stops: Unlike RSI which uses a fixed averaging period, the QQE incorporates volatility by utilizing trailing stop levels derived from the Average True Range (ATR). This aims to adapt to changing market conditions and potentially smooth out the indicator’s readings.
• Fast and Slow Trailing Levels: The QQE indicator often calculates two trailing stop levels: a fast and a slow level. These levels fluctuate based on volatility and can provide additional insights into momentum shifts.
• Signal Line: Many versions of the QQE include a signal line plotted alongside the main oscillator line. This signal line is typically a moving average of the QQE, which can help identify potential trading signals when it crosses the main oscillator line.
• Crossover Signals: Traders may use crossovers between the QQE line and the signal line or the trailing stop levels as buy and sell signals. For instance, a bullish crossover might involve the QQE line rising above the signal line or the fast trailing level.
• Threshold Levels: Some QQE variations might incorporate horizontal lines at specific RSI levels (e.g., 70 and 30) to represent overbought and oversold zones. These zones can be used in conjunction with the QQE’s movement and crossovers for further signal confirmation.
• Potential Trend Confirmation: The QQE’s behavior can potentially help confirm existing trends. When the QQE oscillates within a range during an uptrend, it might suggest continued buying pressure. Conversely, a downtrend may see the QQE consistently staying below the centerline.
• Customization Options: MetaTrader4 allows customization of the QQE indicator’s parameters. This includes adjusting the moving average periods for the signal line, the ATR multiplier for the trailing stops, and potentially the RSI threshold levels if used.

Conclusion

The QQE lines with alerts Indicator for MetaTrader 4 is an indicator designed to help traders in identifying potential buying and selling opportunities in the market. Utilizing the Qualitative Quantitative Estimation (QQE) indicator, it offers a visual representation through a histogram and lines. By analyzing momentum, overbought/oversold conditions, and trend identification, traders can make more informed decisions. The indicator includes features such as momentum oscillators, volatility-based trailing stops, signal lines, crossover signals, threshold levels, and customization options.

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