QQE MOD

The QQE MOD indicator integrates two Qualitative Quantitative Estimation (QQE) calculations into a single tool to provide high-probability trend signals through momentum and volatility analysis. By combining primary and secondary QQE components with a Bollinger Band-based zero line, the script identifies confluent trend reversals and strength changes.

Usage

The Usage section describes how the script can be used to identify trend direction and momentum shifts. The indicator displays as a histogram centered around a zero line, where the interaction between the fast (Secondary) and slow (Primary) QQE components determines the signal output.

• Trend Confirmation: When both the primary and secondary QQE components align, the indicator highlights the histogram bars in green (Bullish) or red (Bearish). These colored bars suggest a high-probability trend is in place.
• Neutral Zones: When the components do not agree or fall within the threshold range, the bars appear gray, indicating a period of consolidation or weak momentum.
• Volatility Filtering: The inclusion of Bollinger Bands calculated on the Primary QQE trend line acts as a dynamic threshold. Signals are only triggered when momentum breaks out of these volatility bands, helping to filter out market noise.

Details

The QQE MOD is a modified version of the traditional Qualitative Quantitative Estimation indicator, originally based on the work of Glaz. It utilizes a smoothed Relative Strength Index (RSI) and its volatility-based bands (using Wilder’s Period ATR) to determine trend direction.

The "MOD" version specifically runs two simultaneous QQE calculations with different sensitivities:

1. Primary QQE: Acts as the macro trend filter, typically using a slower setting to establish the overall market bias.
2. Secondary QQE: Acts as the micro momentum trigger, using faster settings to detect immediate shifts.
3. Bollinger Band Logic: Instead of a static zero line, the primary component is compared against Bollinger Bands. An upward signal is generated when the Secondary RSI is above its threshold and the Primary RSI exceeds the upper Bollinger Band.

Settings

Primary QQE Settings

• RSI Length: Sets the lookback period for the primary RSI calculation.
• RSI Smoothing: Determines the EMA length applied to the primary RSI.
• QQE Factor: The multiplier used to determine the width of the primary trailing volatility bands.
• Threshold: The value required for the RSI to be considered trending away from the midpoint.
• RSI Source: The price data (e.g., close, open) used for the primary calculation.

Secondary QQE Settings

• RSI Length: Sets the lookback period for the secondary (faster) RSI.
• RSI Smoothing: Determines the EMA length for the secondary RSI.
• QQE Factor: The multiplier for the secondary volatility bands; typically lower than the primary factor.
• Threshold: The momentum threshold for the secondary component.
• RSI Source: The price data used for the secondary calculation.

Bollinger Bands Settings

• Length: The SMA period used to calculate the basis of the volatility bands.
• Multiplier: The standard deviation multiplier that defines the width of the bands around the zero line.

FAQ

How do I interpret the colored bars?

Green bars indicate that both the primary and secondary QQE components are in a bullish state and momentum has exceeded the volatility threshold. Red bars indicate both components are in a bearish state. Gray bars indicate a lack of confluence or momentum.

Can this indicator be used for alerts?

Yes, the script includes built-in alert conditions for primary RSI zero crosses and for the "Up" and "Down" signal triggers when both QQE components align.

How do I access the QQE MOD?

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