QQE SIGNALS:ALL YOU NEED TO KNOW
What is the QQE SIGNAL INDICATOR?
The QQE signals become more popular day after day among traders around the world,
So what is QQE signals indicator ?and does it merit to be one of the big momentum indicators
Like macd, sthocastic and RSI ?
What are the QQE signals?
QQE signals or QQE indicators is what we call The Quantitative Qualitative Estimation (QQE) indicator,
we can say that QQE inicators is the beter version of RSI because it helps find
Find the trend direction more accurately and the price momentum of any market.
How QQE signal are calculated ?
QQE signals are calculated by using RSI oscillator ombined with the ATR (average true range),
instead of using the classic RSI, the QQE signal indicator uses Wilder’s RSI, derived from a different
form of the exponential moving average for the smoothing.
This is the mathematical formula :
Wilder’s smoothing = Previous MA value + (1/n periods * (Close – Previous MA))
What are the benefits of the QQE SIGNALS?
As we said before QQE indicator signal is momentum indicators , thats mean it can help in many Ways :
1. Find the trend direction more accurately :
The QQE signal used to determine the trend with normal Settings,thas mean if the values above 50 ,
we are in a bullish market, while values below 50 indicate a bearish market.
2. Detects overbought and oversold market :
The QQEcan be used to determine whether the price is in oversold or overbought conditions.
As a result, when the indicator rises above the threshold of 70 then we are in an
overbought conditions, while values below 30 indicate oversold conditions.
3- Shows the price momentum :
We can take Long trades when the smoothed RSI line crosses above the slow trailing line,
indicating short-term upward momentum. In the other hand shorts may be a better option
when the smoothed RSI crosses below the slow trailing line, indicating short-term momentum is to the downside.
HOW TO USE QQE SIGNAL FOR Day Trading ?
For day trading strategy, we wil use only 2 indicators :QQE signal indicator and the 20 ema
(exponential moving average).
The long trade setup :
We will choose the 15 min as a time frame for the setup, it is better to look for the trade signals
in major currency , or trade volatile market like future contract ,gold or even us oil.
The condition of the long trade setup are :
1-Find an asset in which the price trading above the 20 EMA.
2-In the 15 mn chart wait for the price to test the 20 EMA.
3-At the QQE INDICATOR there must be a confirmation of bullish momentum.
HOW TO SET TAKE PROFIT AND STOP LOSS for LANG SETUP:
TAKE PROFIT:
By analyzing the resistance level on the main chart, we must establish the take profit level.
However, it is important to position the take profit so that the risk to return ratio is greater than 1:2.
STOP LOSS:
As the 20 EMA is your dynamic support level, we may place our stop below the 20 EMA.
The short trade setup :
We will choose again the 15 min as a time frame for the setup, it is better to look for the trade signals
in major currency , or trade volatile market.
The condition of the long trade setup are :
1-Find an asset in which the price trading below the 20 EMA.
2-In the 15 mn chart wait for the price to test the 20 EMA.
3-At the QQE INDICATOR there must be a confirmation of bearish momentum.
HOW TO SET TAKE PROFIT AND STOP LOSS for SHORT SETUP:
TAKE PROFIT:
Again always respect the 1:2 ratio or higher.
STOP LOSS:
We will always place The stop loss right above the 20 EMA.
