Quantitative Qualitative Estimation (QQE)

The indicator QQE, is an interesting tool based on a Relative Strength Index ( RSI ). While the original RSI is often used as a pointer for overbought or oversold market phases, the QQE provides additional information. Use the QQE to display trend direction and trend strength.

For me this is one of the most important indicator for Trend Following.

##This QQE indicator is an improved version made by 'mladen' for Metatrader 4.

The histogram does not differ from the original QQE! The developer has adapted the scaling so that the central horizontal level is zero. It has no effect to the result, but is much more convenient to analyze the trend.

Main Signals

Background changes when the black line crosses the grey line.

Identify the trend direction

Singal turns green while the main QQE trendline is above the zero line and red while it is below.

This works best in the major timeframes like Daily or Weekly.
You can activate this signal in the settings.

Identify the trend strength

_Histogram Colors_
Green (above 10): bullish
Red (below -10): bearish
Yellow: flat

It is not a buy or sell signal when the color of the histogram changes. It only says that one side could gained the advantage.

If you use a large timeframe like Monthly, you can reduce the number of false signal by setting the SF (Slow Factor) from 5 (default) to 1.
S&P 500 , Monthly

Please always remember, there is no holy grail indicator!
...but this one defines trends quite accurately.
Protected script
This script is published closed-source and you may use it freely. You can favorite it to use it on a chart. You cannot view or modify its source code.

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.

Want to use this script on a chart?