QQE / RSI

The QQE / RSI indicator provides a comprehensive momentum and trend analysis tool by merging two Qualitative Quantitative Estimation (QQE) calculations with Relative Strength Index (RSI) data. It aims to identify high-probability trend directions by filtering price action through volatility-based trailing stop lines and Bollinger Band thresholds.

Usage

The script is visualized as a column-based oscillator with a central zero line. It monitors the agreement between a fast and a slow QQE calculation to generate trend signals.

• Bullish Signal: Occurs when the RSI-derived columns exceed a specific positive threshold and the secondary QQE component breaks above its upper Bollinger Band. These are colored with the "Bullish" color (default: green).
• Bearish Signal: Occurs when the columns drop below a specific negative threshold and the secondary QQE component breaks below its lower Bollinger Band. These are colored with the "Bearish" color (default: red).
• Neutral/None: When the conditions for a strong trend are not met, the columns transition to the "None" color (default: blue) or disappear, indicating a lack of clear momentum agreement.

The inclusion of a 50-period Bollinger Band acting as a dynamic zero line helps traders identify when momentum is stretching beyond typical volatility ranges.

Details

The Qualitative Quantitative Estimation (QQE) is a smoother derivative of the RSI. It utilizes a smoothed RSI value and a volatility-based Trailing Stop line derived from a smoothed Average True Range (ATR) of that RSI.

This specific implementation uses a dual-QQE structure:

1. Primary QQE: Calculated with a specific factor and threshold to determine the baseline momentum.
2. Secondary QQE: Integrated with a Bollinger Band (default 50-length) to act as a filter.

By requiring both components to agree, the indicator reduces "noise" commonly found in standard RSI oscillators, ensuring that signals are backed by both price strength and volatility expansion.

Settings

QQE Style

• Bullish: Sets the color for positive trend agreement columns.
• Bearish: Sets the color for negative trend agreement columns.
• None: Sets the color for neutral momentum columns.

Relative Strength Index Indicator

• RSI Length: The lookback period for the primary RSI calculation.
• RSI Smoothing: The EMA length applied to smooth the primary RSI.
• RSI Source: The price source used for the calculation (Close, Open, etc.).

Second Relative Strength Index Indicator

• RSI Length: The lookback period for the secondary RSI calculation.
• RSI Smoothing: The EMA length applied to smooth the secondary RSI.

Quantitative Qualitative Estimation (First & Second)

• Fast QQE Factor: The multiplier applied to the ATR-derived trailing stop lines.
• Thresh-hold: The level the smoothed RSI must cross to trigger signal states.

Bollinger Band

• Length: The lookback period for the SMA and Standard Deviation of the Bollinger Band filter.
• Multiplier: The width of the Bollinger Band, affecting how sensitive the trend filtering is.

FAQ

How do I interpret the colored columns?

Brightly colored green or red columns indicate that both internal QQE calculations agree on a trend. Blue columns indicate momentum exists but hasn't yet reached the "confirmed" volatility threshold.

Can I change the sensitivity of the signals?

Yes, by adjusting the "Fast QQE Factor" and the "Bollinger Band Multiplier," you can make the indicator more reactive to small price changes or more conservative for long-term trends.

How do I access QQE / RSI?

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