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The Q-Stick indicator is an exponential moving average of the difference between the open and close. The “stick” in the name comes from candlestick charting. The body of a candlestick is from the open to the close. A white candlestick is an up and a black candlestick is a down day.

Positive Q-Stick values indicate a majority of up days; negative values, a majority of down days.

You can interpret the Q-Stick in several ways:

• Look for a buy signal when it crosses above zero, and a sell signal when it crosses below zero.
• Look for a buy signal when it is very low and turns up, and a sell signal when it is very high and turns down.
• You can also look for divergence between the indicator and price to indicate the end of a trend or as a non-confirmation of a price move.
• A moving average of the Q-Stick can be used as a trigger line (look for the Qstick to cross the triggerQ-Stick.)

Q-Stick is developed by Tushar S. Chande and Stanley Kroll and introduced in their 1994 book “The New Technical Trader”.

 

Calculation:

QStick = MA_Period(Close-Open)

                MA_{Period =} Moving Average

 

Inputs:

Period = 8

Indicates time period(the number of days for daily analysis, the number of weeks for weekly analysis, etc.).

Moving Average Type = Simple

Indicates the Moving Average type. 

 

Indicator Type: Trend