QQE signals

The QQE signals indicator provides automated long and short entry signals directly on the price chart by tracking the crossovers of the Quantitative Qualitative Estimation oscillator. This tool streamlines trend identification and momentum reversals by converting complex oscillator data into actionable visual labels and alerts.

Usage

The Usage section describes how the script can be used, and how it helps traders identify potential market entries. The indicator plots "Long" labels below price bars and "Short" labels above price bars based on internal QQE momentum shifts.

• Trend Reversals: Traders can use the labels to identify the start of a new bullish or bearish trend. A "Long" signal suggests momentum has shifted to the upside, while a "Short" signal suggests downside pressure.
• Signal Confirmation: These signals are often used in conjunction with other technical analysis tools, such as moving averages or support and resistance levels, to filter out signals occurring against the primary trend.
• Alert Integration: The script includes built-in alert conditions, allowing users to receive notifications for every new signal identified on the chart.

Details

The QQE (Quantitative Qualitative Estimation) is an evolution of the Relative Strength Index (RSI). It utilizes a smoothed RSI and two volatility-based trailing stop lines (Fast and Slow trailing levels). This specific implementation focuses on the "Fast" QQE component.

The calculation involves:

1. Smoothing a standard RSI using an Exponential Moving Average (EMA).
2. Calculating a volatility-based range (Absolute ATR of the smoothed RSI) which is then smoothed again using a Wilder’s smoothing method.
3. Applying a multiplier (Fast QQE Factor) to this range to create trailing bands.
4. Generating signals when the smoothed RSI crosses these trailing bands, indicating a change in momentum direction.

Settings

• RSI Length: Determines the lookback period for the base Relative Strength Index calculation.
• RSI Smoothing: Sets the length of the EMA used to smooth the RSI values.
• Fast QQE Factor: A multiplier applied to the ATR of the smoothed RSI to determine the distance of the trailing stop lines. Higher values result in fewer, more filtered signals.
• Thresh-hold: A sensitivity parameter used in the underlying QQE calculation logic.

FAQ

How do I interpret the signals? A "Long" signal appears when the smoothed RSI crosses above the trailing band, suggesting bullish momentum. A "Short" signal appears when the smoothed RSI crosses below the trailing band, suggesting bearish momentum.

Can I adjust the sensitivity of the signals? Yes, by increasing the "Fast QQE Factor" or the "RSI Length," you can reduce the number of signals and focus on longer-term trends. Decreasing these values will make the indicator more responsive to short-term price movements.

How do I access this script? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.