QQE Cross v6.0 with Long-Short Alerts

The QQE Cross v6.0 indicator is a comprehensive trend-following tool that generates actionable long/short signals based on the Quantitative Qualitative Estimation (QQE) algorithm combined with multi-layered moving average filters. It aims to identify high-probability trend reversals and provide structured entry and exit points for traders across various timeframes.

Usage

The Usage section focuses on interpreting the visual signals and signal logic:

• Long Signals: Displayed as green triangles below the bars, these appear when the trend conditions align based on the selected QQE signal type (Cross, Zero, or Channel) and optional MA filters.
• Short Signals: Displayed as red triangles above the bars, these indicate bearish momentum shifts.
• Take Profit Alerts: Small purple triangles appear when the internal moving averages indicate a potential exhaustion in the current trend, suggesting a point to scale out or close positions.
• Trade Logic: Users can choose between three primary signal triggers:
  • XC (Channel Exit): Signals when the RSI exits the threshold channel.
  • XQ (QQE Cross): Signals when the RSI crosses the fast QQE trailing line.
  • XZ (Zero Cross): Signals when the RSI crosses the 50 level.

Details

The script is a refactored version of the classic QQE implementation, integrating the following concepts:

• Quantitative Qualitative Estimation: Uses a smoothed RSI and a volatility-based trailing stop (Fast ATR RSI TL) to determine trend direction.
• Multi-Moving Average Filter: Employs three customizable MAs (Fast, Medium, Slow) to ensure signals are only generated in the direction of the broader trend.
• Multi-Timeframe Ribbon: An optional "Anchor" multiplier allows users to plot a second ribbon of moving averages based on a higher relative timeframe, providing a macro-view on the current chart.
• Trend Directional Filter: A specific check on the slope of the medium moving average to prevent trading against a flat or counter-trend market.

Settings

Moving Averages

• Relative TimeFrame Multiplier: Sets the multiplier for the second MA ribbon (e.g., 4x the current timeframe).
• MA Type (Fast/Medium/Slow): Choose from 11 different moving average types including EMA, HullMA, and Zero Lag EMA.
• Length: Sets the lookback period for the respective moving averages.

QQE Parameters

• RSI Length: The lookback period for the base RSI calculation.
• RSI Smoothing Factor: The smoothing applied to the RSI before calculating the QQE.
• Fast QQE Factor: A multiplier that determines the sensitivity of the trailing bands.
• RSI Threshold: Defines the channel range around the 50-level for exit/entry logic.

Filters & Signals

• Select Signal to Buy/Sell: Determines which QQE event triggers an entry (XC, XQ, or XZ).
• Use Moving Average Filter: When enabled, signals only trigger if price and MAs are in a specific stacked alignment.
• Use Trend Directional Filter: Filters signals based on the slope of the medium moving average.

FAQ

How do I interpret the purple "Take Profit" markers?

These markers suggest potential trend exhaustion by monitoring the convergence/divergence of the internal moving averages and the alt-ribbon. They are designed as warnings rather than hard exit signals.

What is the best signal type to use?

The "XQ" (QQE Cross) is the standard approach for most traders, while "XC" (Channel Exit) is typically used for momentum-based strategies.

How can I access this indicator?

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