How to use it?
Last updated
Last updated
The "Quantitative Qualitative Estimation" indicator is a technical analysis tool designed for traders seeking an edge in identifying trends and reversal points in the market. Its implementation on the TradingView platform allows users to benefit from clear visualizations and intuitive signals to optimize their trading decisions. Below are the steps and strategies for effectively using this indicator.
Adding the Indicator:
Open your chart on TradingView.
Click on the "Indicators" icon and search under "Invite-Only."
Click on the indicator, and it will automatically be added to the chart.
Parameter Adjustment:
Once the indicator is added, adjust the parameters according to your trading needs. Key adjustments include:
RSI Length: Adjust this parameter to change the sensitivity of the RSI to price movements.
Smoothing Factor (RSI Smoothing): This parameter helps reduce noise in RSI data, providing a clearer signal.
QQE Factor (Fast QQE Factor): Modify the sensitivity of the dynamic bands to adapt to market volatilities.
Thresholds: Set these values to define critical points where signals should be considered for trades.
The Tradefi.bot QQE (Quantitative Qualitative Estimation) Indicator is a versatile tool that provides a wealth of information about market trends, strengths, and potential reversals. This page will guide you on how to interpret the signals generated by the QQE Indicator, understand trend strengths, identify divergences, and recognize regression points.
The QQE Indicator uses the RSI to measure the speed and change of price movements. The RSI oscillates between 0 and 100 and provides insights into overbought and oversold conditions.
Overbought Condition: RSI above 70 suggests the asset might be overbought, indicating a potential reversal or pullback.
Oversold Condition: RSI below 30 suggests the asset might be oversold, indicating a potential upward reversal.
The Fast QQE line is smoothed RSI and represents the momentum of the price action.
Bullish Signal: When the Fast QQE line crosses above a threshold (default: 50), it indicates bullish momentum.
Bearish Signal: When the Fast QQE line crosses below the threshold, it indicates bearish momentum.
The QQE Indicator incorporates bands similar to Bollinger Bands, which expand and contract based on market volatility.
Upper Band: Represents the overbought level. When the Fast QQE line crosses above the upper band, it suggests a strong bullish trend but also a potential overbought condition.
Lower Band: Represents the oversold level. When the Fast QQE line crosses below the lower band, it suggests a strong bearish trend but also a potential oversold condition.
The QQE Indicator helps determine the strength and direction of a trend.
Strong Bullish Trend: When the Fast QQE line stays above the upper band for an extended period.
Strong Bearish Trend: When the Fast QQE line stays below the lower band for an extended period.
Weakening Trend: When the Fast QQE line starts moving towards the bands from an extreme position.
Divergences between the price and the QQE Indicator can signal potential trend reversals.
Bullish Divergence: When the price makes lower lows, but the QQE line makes higher lows, indicating a potential upward reversal.
Bearish Divergence: When the price makes higher highs, but the QQE line makes lower highs, indicating a potential downward reversal.
Regression points indicate potential areas where the price might retrace before continuing in the direction of the trend.
Support Levels: Identified when the price bounces off the lower QQE band.
Resistance Levels: Identified when the price is rejected by the upper QQE band.
The zero line is a critical level in the QQE Indicator.
Bullish Cross: When the Fast QQE line crosses above zero, it indicates the start of bullish momentum.
Bearish Cross: When the Fast QQE line crosses below zero, it indicates the start of bearish momentum.
The Fast QQE line crosses above the zero line.
The Fast QQE line remains above the upper band.
The RSI is above 50, confirming bullish momentum.
No bearish divergence is observed.
The Fast QQE line crosses below the zero line.
The Fast QQE line remains below the lower band.
The RSI is below 50, confirming bearish momentum.
No bullish divergence is observed.
Look for higher highs in price and lower highs in the QQE line for bearish divergence.
Look for lower lows in price and higher lows in the QQE line for bullish divergence.
When the Fast QQE line touches or crosses the upper band and then reverses, it may indicate a potential sell signal.
When the Fast QQE line touches or crosses the lower band and then reverses, it may indicate a potential buy signal.
The Tradefi.bot QQE Indicator provides comprehensive insights into market conditions. By understanding and interpreting its various components, traders can make informed decisions about entry and exit points, trend strengths, and potential reversals. Use the QQE Indicator alongside other technical analysis tools to enhance your trading strategy and improve your overall market analysis.
Trend Identification:
Observe the dynamic bands and the position of the smoothed RSI. An uptrend is indicated when the smoothed RSI crosses above the lower dynamic band, and a downtrend when it crosses below the upper band.
Buy and Sell Signals:
Buy: A buy signal is generated when the smoothed RSI crosses upwards the lower band. This suggests that the asset may be emerging from an oversold condition.
Sell: A sell signal occurs when the smoothed RSI crosses downwards the upper band, indicating a possible overbought condition.
Use of Bar Coloring:
Pay attention to the colors of the bars on the chart. Yellow bars indicate potential buy zones (oversold), while purple suggests sell zones (overbought).
Combination with Other Tools:
To enhance the effectiveness of the indicator, combine it with other technical analysis tools such as support and resistance, other oscillators, or candlestick pattern analysis.
Risk Management:
Always set stop-loss and take-profit levels according to your risk strategy. The indicator, though powerful, should be used within a well-defined risk management framework to avoid significant losses.
Testing and Adjustments:
Before applying this indicator in real trading, conduct backtesting with historical data to validate its effectiveness. Adjust parameters and trading strategies based on the results obtained and current market conditions.
The "Quantitative Qualitative Estimation" indicator provides traders with a robust tool for identifying trends and reversal points in the market. Its proper use, combined with a well-planned trading strategy and risk management techniques, can significantly enhance trading success opportunities.
