QQE Indicator
Platform: MT5 Type: Momentum Last update: December 25, 2024The QQE Indicator for MT5 provides bullish, bearish and neutral momentum readings. Behind the scenes, its calculations are based on the relative strength index, thus it also has oscillator’ features. The best thing about this tool is that it actually has no lag in provided signals.
Example chart:
How does the qqe indicator work?
After activation, it plotts fast and slow lines plus histogram bars. There is also a 0 level on scale, which is a point of referrence for positive and negative values. As a rule of thumb, this is the general meaning of displayed colors and signals:
- green corresponds to bullish momentum
- red corresponds to bearish momentum
- yellow reflects neutral or sideways movement
Trading strategies and potential approaches
The qualitative quantitative estimation is usually used to determine short and mid market trends, but also works well in pointing reversals (this requires good skills and it’s wise to use other technical tools for a support). In terms of its nature, it is slightly slower but smoother, when compared to the rsi. This characteristic significantly reduces the likelihood of false signals.
There is a special zone defined by 10 and -10 levels. Every action that happens within it, is an early omen. When an entry is triggered there, it will be ultimately confirmed when lines move out of the zone and histo bars gets specific colors. On the other hand, taking these opportunities allow to maximize profits.
When it comes to entries, these are suggested triggers:
- for a long trade, the green line should switch below the gray one
- for a short trade, the green line should switch above the gray one
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