QQE Indicator
Platform: MT4 Type: Momentum Last update: September 25, 2024The QQE Indicator for MT4 is a unique and quite popular forex indicator providing solid trading signals. When it comes to solving the mystery of its name, the QQE abbreviation stands for Qualitative Quantitative Estimation.
The QQE indicator performs pretty advanced calculations based on the smoothed RSI indicator. As a result, a trader gets two lines — fast and slow – and they cross each other from time to time triggering a signal.
Anatomy of the QQE Indicator
The QQE Indicator is primarily used for trend-momentum determination. Its great advantage is the way it deals with volatility changes and it has no lag and rarely produces false signals. As we already mentioned, the QQE Indicator consists of the fast line (green) and the slow line (red). When the fast line rises above the slow line, it triggers a potential buy trade. Conversely, when the fast line drops below the slow lines, a potential sell trade is provided. By default, it plots buy/sell arrows accordingly.
Buy Signal
Follow these steps for a long trade:
- Green line rises above red line
- Optionally, indicator lines are in the oversold area (below – 10 level)
- Buy arrow appears
- Open buy trade at the triggering candle close
- Set stop loss a few pips below the most recent market low point
- Take profit/exit long whenever an opposite arrow is plotted
Sell Signal
Follow these steps for a short trade:
- Green line drops below red line
- Optionally, indicator lines are in the overbought area (above + 10 level)
- Sell arrow appears
- Open sell trade at the triggering candle close
- Set stop loss a few pips above the most recent market high point
- Take profit/exit long whenever an opposite arrow is plotted
Additional notes
You can take into consideration the idea of adding the Moving Average to your charts. Pairing the MA with QQE indicator and trading only in the direction of the overall trend gives very good results. Take a look at the screenshot to get the idea:
