Description

• Founded by Tushar Chande and Stanley Kroll, Qstick is an exponential moving average of difference between close and open rate
• Name Q Stick is derived from candlestick charting technique as open and close are a very important part of analysis
• It helps to catch trend by oscillating above and below zero level

Interpretation

• Q Stick crossing zero level from below triggers positive crossing for buy signal
• Q Stick crossing zero level from above triggers negative crossing for sell signal
• Since it is a moving average of absolute distance between open & close, divergence between price and Qstick helps to indicate the end of trend

Default Parameters Used/Inputs

• Open Line
• Close Line
• Q Stick Type
• Q Stick Period
• Avg Type
• Avg Period

Returns/Output

Q Stick value of stocks for the specified period

Formula

Qstick = Moving Average (Close – Open)
where,
Average = Exponential Moving Average for n bars