The QQE (Quantitative Qualitative Estimation) indicator for cTrader is a powerful momentum oscillator based on an advanced smoothing calculation of the Relative Strength Index (RSI). By applying multiple layers of smoothing, QQE reduces market noise and provides clearer, more reliable trading signals compared to standard RSI-based indicators.
The indicator is displayed in a separate window and consists of two lines: a fast line and a slow line. In addition, a key reference level at 50 is used to identify bullish and bearish conditions. The QQE indicator supports visual arrows, text alerts, sound alerts, and email notifications, helping traders stay informed of important market signals.
This implementation also supports multi-timeframe analysis, allowing traders to calculate the indicator using higher timeframe data while displaying it on a lower timeframe chart. The QQE indicator is fully compatible with the cTrader platform.
How the QQE Indicator Works
The QQE indicator analyzes market momentum by smoothing RSI values and comparing two resulting lines. This approach helps detect trend direction, momentum shifts, and potential reversals more effectively.
Signals are generated in two main ways:
- Line crossovers, which indicate changes in momentum
- Level crossings, especially around the key 50 level, which confirm bullish or bearish bias
By combining these signal types, QQE can be used both as a direct trading signal generator and as a confirmation tool for trend-following strategies.
Input Parameters
Main Settings
- SF (default: 5)
The smoothing factor applied to the RSI calculation. - AlertOnCrossover (default: false)
Enables alerts when the fast and slow QQE lines cross. - AlertOnLevel (default: false)
Enables alerts when the QQE RSI line crosses a specified level. - AlertLevel (default: 50)
The reference level for alerts. It is recommended to keep this value unchanged.
Arrow and Visual Settings
- ArrowsOnCrossover (default: true)
Displays arrows on the chart when the QQE lines cross. - CrossoverUpArrow (default: Green)
Arrow color for bullish crossovers. - CrossoverDnArrow (default: Red)
Arrow color for bearish crossovers. - ArrowsOnLevel (default: true)
Displays arrows when the QQE RSI line crosses the reference level. - LevelUpArrow (default: Green)
Arrow color for upward level crossings. - LevelDnArrow (default: Red)
Arrow color for downward level crossings.
Alert and Notification Settings
- NativeAlerts (default: false)
Enables on-screen message alerts. - EmailAlerts (default: false)
Sends email notifications when signals occur. - NotificationAlerts (default: false)
Sends push notifications according to platform settings.
Multi-Timeframe Settings
- UpperTimeframe (default: PERIOD_CURRENT)
Allows the indicator to calculate signals based on a higher timeframe than the current chart. - ObjectPrefix (default: "QQE-")
Prefix used for chart objects to ensure compatibility with other indicators.
Trading Strategy and Example
The QQE indicator can be used for both signal-based trading and divergence analysis. It generates two primary types of trading signals:
- Line crossover signals
- When the fast (blue) line crosses the slow (yellow) line from below, it generates a buy signal.
- When the fast (blue) line crosses the slow (yellow) line from above, it generates a sell signal.
- Level crossing signals
- When the blue line crosses the 50 level from below, it indicates a bullish signal.
- When the blue line crosses the 50 level from above, it indicates a bearish signal.
In the provided example, a EUR/USD hourly chart is shown with the QQE indicator calculated using 4-hour timeframe data. Two red arrows highlight bearish signals: the first generated by a line crossover and the second by the blue line crossing below the 50 level.
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