Concept

QQE

QQE, also known as quantitative qualitative estimation, is a Momentum & Oscillators concept. The Library holds 1 implementation, a working definition you can pull into Quant.

+ QQE signals

Top QQE indicator

The top custom implementation, built on the original standard QQE formula.

1 total

This QQE implementation is strategy-ready: open it in Quant, set your rules, and it backtests automatically.

QQE Weighted Oscillator preview

QQE Weighted Oscillator

Indicator

What is QQE?

QQE (Quantitative Qualitative Estimation) is a smoothed-RSI system with a built-in trailing level. It smooths a standard RSI with a short EMA, measures the typical size of that line's own bar-to-bar moves with a Wilder-style moving average, and offsets a trailing level from the line by a multiple of that value. The classic parameterization uses a 14-period RSI, a 5-period smoothing EMA, and a 4.236 multiplier. The result behaves like a chandelier stop applied to the oscillator instead of to price: the level ratchets behind the smoothed RSI and flips only when the line crosses it.

Authorship is uncertain. QQE spread through forex forums in the mid-2000s without a formal publication or an identified author, and it survives in many variants: single trailing line, fast and slow trailing lines, histogram renditions, and normalized versions. Any single formula is therefore one implementation among several. It shares that forum lineage with the Traders Dynamic Index, which wraps a similarly smoothed RSI in Bollinger-style bands and signal lines; QQE reduces the same input to one line and one trailing level.

Mechanically, QQE runs Wilder's smoothing twice. The absolute bar-to-bar change of the smoothed RSI is averaged over roughly twice the RSI length (27 bars in the common 14-period build) and smoothed again, giving in effect an average true range of the oscillator itself. Multiplying that by 4.236 sets the offset for the trailing level, which ratchets up beneath a rising line and down above a falling one.

The design matters because it changes what an oscillator signal is. Classic momentum tools trigger on fixed thresholds or on signal-line crosses, the way MACD does; QQE triggers when momentum reverses by more than its own recent volatility, so quiet markets need only a small turn and noisy markets need a large one. Because the trailing level ratchets rather than tracking every wobble, QQE can hold a bias through oscillations that whipsaw raw-RSI rules, at the cost of reacting later when momentum genuinely turns. That places it closer to a trend-following device than to a classic overbought/oversold oscillator.

How to identify QQE signals on a chart

QQE plots in its own pane, usually a smoothed RSI line accompanied by a dotted or stepped trailing level on the familiar 0-100 RSI scale.

  1. 1Apply a QQE indicator and note its settings; a 14-period RSI, a smoothing factor of 5, and a 4.236 multiplier are the common defaults.
  2. 2Find the smoothed RSI line and its trailing level; the level steps and ratchets rather than following every fluctuation of the line.
  3. 3Mark the most recent cross: line above the trailing level reads as bullish momentum, line below as bearish.
  4. 4Check position against the 50 midline; many rule sets only honor crosses that occur on the matching side of 50.
  5. 5Watch the gap between line and level: a widening gap shows momentum accelerating, a narrowing one warns the ratchet may soon flip.

How it's calculated

Plots a smoothed RSI against a volatility-scaled trailing line derived from that RSI's own average change, with crosses between the two defining signals.

RSI⁡t=Wilder RSI of length n on close C\operatorname{RSI}_t = \text{Wilder RSI of length } n \text{ on close } C
Ft=EMA⁡p(RSI⁡) (smoothed RSI, the fast line)F_t = \operatorname{EMA}_p(\operatorname{RSI}) \ \text{(smoothed RSI, the fast line)}
Dt=∣Ft−Ft−1∣D_t = \lvert F_t - F_{t-1} \rvert
DAR⁡t=EMA⁡w(EMA⁡w(D))×m,with w=2×n−1\operatorname{DAR}_t = \operatorname{EMA}_w(\operatorname{EMA}_w(D)) \times m, \quad \text{with } w = 2 \times n - 1
LongBand⁡t=max⁡(LongBand⁡t−1, Ft−DAR⁡t) while Ft and Ft−1 stay above LongBand⁡t−1, otherwise Ft−DAR⁡t\operatorname{LongBand}_t = \max(\operatorname{LongBand}_{t-1},\ F_t - \operatorname{DAR}_t) \text{ while } F_t \text{ and } F_{t-1} \text{ stay above } \operatorname{LongBand}_{t-1}, \text{ otherwise } F_t - \operatorname{DAR}_t
ShortBand⁡t=min⁡(ShortBand⁡t−1, Ft+DAR⁡t) while Ft and Ft−1 stay below ShortBand⁡t−1, otherwise Ft+DAR⁡t\operatorname{ShortBand}_t = \min(\operatorname{ShortBand}_{t-1},\ F_t + \operatorname{DAR}_t) \text{ while } F_t \text{ and } F_{t-1} \text{ stay below } \operatorname{ShortBand}_{t-1}, \text{ otherwise } F_t + \operatorname{DAR}_t
Trend turns up when Ft crosses above ShortBand⁡t−1, turns down when Ft crosses below LongBand⁡t−1\text{Trend turns up when } F_t \text{ crosses above } \operatorname{ShortBand}_{t-1}, \text{ turns down when } F_t \text{ crosses below } \operatorname{LongBand}_{t-1}
QQE⁡t=LongBand⁡t while the trend is up, ShortBand⁡t while the trend is down\operatorname{QQE}_t = \operatorname{LongBand}_t \text{ while the trend is up, } \operatorname{ShortBand}_t \text{ while the trend is down}
C: close price
t: bar index (t-1 is the prior bar)
n: RSI length (default 14)
RSI_t: Wilder's RSI of the close, length n
p: RSI smoothing length (default 5)
EMA_x: exponential moving average over x bars (x stands for p or w)
F_t: smoothed RSI, the QQE fast line
D_t: absolute one-bar change of F
w: Wilder smoothing length, 2 × n - 1 (27 when n = 14)
m: QQE band multiplier (default 4.236)
DAR_t: double-smoothed average change of F times m, the trailing distance (often called the dynamic ATR of RSI)
LongBand_t: rising trailing band below F
ShortBand_t: falling trailing band above F
QQE_t: the slow trailing line plotted against F

Common defaults are n = 14, p = 5 and m = 4.236; some ports use 4.238, and fast/slow variants pair a smaller multiplier such as 2.618 with the 4.236 line.

Typical signals are F crossing the QQE trailing line plus crosses of the 50 midline; both lines live on the 0 to 100 RSI scale.

QQE originated as a MetaTrader community indicator with no single published source, so implementations differ in small details.

How traders use it

  • As a stop-and-reverse on momentum: bullish bias while the smoothed RSI holds above its trailing level, bearish once it crosses below, typically with fewer flips than raw RSI threshold rules produce.
  • With the 50 midline as a second gate: many variants only honor trailing-level crosses that agree with which side of 50 the smoothed RSI occupies.
  • At extremes as a stretch warning, where a smoothed RSI far from 50 argues against chasing even while the trailing level still holds the trend.
  • As a cleaner input for downstream logic (divergence checks, threshold alerts), since the smoothing removes most one-bar spikes before they can trigger anything.
  • For divergence reading: the line's smoothness makes regular bullish/bearish divergence against price easier to compare across swings than on raw RSI, and some traders also track hidden divergence for continuation setups.

QQE vs. other momentum oscillators

RSI: QQE is built from RSI but changes the trade grammar: instead of fixed 30/70 thresholds it smooths the RSI and tracks it with a ratcheting trailing level, so signals come from line crosses rather than zone exits.

Stochastic RSI: Stochastic RSI re-scales RSI to its own recent range, making it faster and twitchier. QQE goes the opposite direction, smoothing RSI and filtering signals through a trailing level to slow the signal rate down.

MACD: MACD measures the spread between two price EMAs and signals on a fixed-lag signal-line cross, with a scale that floats with price. QQE stays inside RSI's bounded scale and signals only when the oscillator retraces by a multiple of its own average change, a volatility-adjusted trigger.

Concept family

Momentum & Oscillators

91 concepts mapped · 91 in the Library

QQE FAQ

Turn QQE into a trading strategy.

Take the implementation from this page into Quant, then build on it, backtest it on real data, and keep refining it in conversation.