This is an uplift of the quantitative and qualitative evaluation indicator that is used in trading binary options on mt4 platforms. It is not restricted to any specific currency pairs or any trading time or timeframe. It operates on the principle of formation of an indicative signals on a histogram plotted using different colors.
The new thing with this indicator is the signal arrows that show where a trader can open a long position and where to place a short position. The long position signal is a green arrow while the short position signal is the red signal. Also in this new version of the QQE a trader can configure the colors of the arrows; they don’t have to be necessarily red and green. Also you can set the alerts to suit you. The alerts are changed at both the alertsOnSignalCross and alertsOnZeroCross parameters.
This indicator also significantly depend on the RSI but its smoothed version.
When you use this indicator you should ensure that you at least use it in combination with other indicators like the FXI pivot points and the channels so as to avoid being caught up in a false alarm and indication of a trend.
It is based on an intricate calculation of smoothed version of the RSI indicators. This gives rise to two lines displayed on a separate indicator window. These lines are the fast moving and the slow moving lines. Therefore the indicator has three lines that are plotted.
Fig.1. The different lines and levels of the QQE
On the indicator window the 50 level is used for signals.
QQE Input bounds
As a trader there are several parameters that you should set before using the QQE indicator. First is the SF that stands for the smoothening factor and it is set to a default of 5. The other is the AlertLevel that is set so as to set alerts and it is by default set to 50. Mostly it is not advisable to change this parameter unless you are very well much acquitted with the trend and the strategy you are using.
Also there is the MsgAlerts that is responsible for displaying messages. It is set to true by default and once it is true the message is displayed. Then there is the SoundAlerts that sets the sound alerts and by default is set to true. Also is the SoundAlertFile is set to alert.wav and is the name that is assigned to the sound of the sound alert.
Lastly is a parameter that is responsible for sending an email alert to your email address and is referred as the eMailAlerts.
Using QQE indicator to trade
The QQE indicator can be used in various ways, which are:
- For trend indication.
In this method the trader should look at when the RSI line crosses the 50 level either downwards or upwards. If downwards then there is an uptrend and hence a good opportunity to open a long position. The vice versa is true for a sell order.
- Watching for overbought and oversold market levels.
This is done by observing whether the RSI passes the 30 or 70 level. If the RSI gets to or passes the 70 level upwards the there is an overbought. If it crosses the 30 level downwards then there is an oversell.
- Pointing out divergent.
This helps in predicting price reversals of the market levels. Open demo account to test this indicator.
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