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QQE Indicator For MT5

Table Of Contents:

1. QQE Indicator For MT5
2. Understanding the indicator
3. Divergences
4. A different way of looking at overbought and oversold
5. Summary

The QQE Indicator For MT5 is a technical oscillator which is a modified version of the Relative Strength Index indicator (RSI). It could really be idea of as a mixture of moving averages and the Average True Range (ATR) plotted on the RSI. The abbreviation, QQE, is short for Quantitative Qualitative Estimation. More technically, the indicator is made up of a smoothed RSI indicator with two fast and wearisome volatility-based trailing levels

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Alerts In Real-Time When Divergences Occur

Understanding the indicator

It'due south useful to know the differences between the standard, standalone RSI and the QQE Indicator For MT5. Firstly, whilst the RSI on this indicator is based on the same menses as the normal RSI, upon close inspection, i tin run into that the RSI here doesn't follow the verbal same trace as the standalone RSI does due to the formula calculation - though information technology does wait similar when they are both compared.

The QQE also does not display the xxx and 70 lines as the RSI does to show overbought and oversold areas. Withal, the same concept is applicative here. A very helpful tip for a trader would be to place two vertical lines with the exact levels of thirty and 70 respectively on the indicator and relieve this equally a template for future reference.

In terms of the parameters of the QQE, overall, this indicator is just a fancier calculation of the RSI; just a different type of RSI really. So, it will not provide a special edge or information that is not already known virtually the RSI, which is why many of the RSI's concepts volition apply hither.

In that location are pretty much 3 chief means this indicator could exist used, but merely two are arguably the about powerful. You tin can trade crossovers like you would with moving averages, and so of course, like almost oscillators, divergences and overbought/oversold. The latter 2 ways can evidence to be ameliorate than crossovers.

Divergences

The 2-tone line in the QQE Indicator For MT5 could be used as the RSI line. RSI probably displays the best divergences beyond all indicators. Whilst divergences occur on all time-frames, not all are worth trading. There is an art to discerning a perfectly divers divergence in a very key surface area that may take a day or even up to a few weeks to class. So, there has to be confluence and other confirmations with the divergences in this indicator.

A unlike mode of looking at overbought and oversold

The overbought and oversold features of the QQE Indicator For MT5 can both be used to signal possible reversal signs or even trend continuation. From an observation signal of view, it's ofttimes much safer to use the overbought and oversold as signs of trend continuation because the knowledge of these features is far besides mutual in the trading industry whereby some traders assume the tendency will immediately end at this indicate. Most of the so-chosen big boys tin can easily manipulate these traders on the chart. In this instance, it is not a signal to trade, only rather an observation point.

The conventional premise says that once the QQE hits the 30 line, you lot should buy - and vice versa, when it hits the 70 line, you should sell. Nosotros really do not know, when this line hits either of these levels, whether we would anticipate a minor retracement or a longer-term reversal. However, a safer assumption would exist to presume an eventual continuation of the current trend depending on the time-frame being viewed.

The screenshot to a higher place is the perfect instance of this. One can notice the crazy uptrend of EUR/JPY on the daily. There are ii peaks higher up the 70 line from around the ane^st of May 2022 and so a further acme approximately ii months later. Whilst there was a pocket-sized pullback from this surface area, it'southward clear that the bigger tendency was bullish.

At that place is one fashion to manipulate overbought and overbought conditions with a more than strategic and effective method. We can think of this equally spotting areas where the 'large boys' hunt stops especially afterward a period of consolidation or range from a stiff trend since overbought and overbought weather condition tend to occur after a strong push or move to either side.

Common knowledge normally suggests that stops should be placed just below the support level or but above the resistance level, and this is the surface area where traders get 'spooked out' earlier the marketplace takes off rather rapidly in the other direction.

The aim of a really good entry is to enter in areas whereby at that place'due south very little momentum, and this is where the QQI tin be highly beneficial. When the QQI shows an overbought or oversold condition specifically around a key support or resistance level or supply and need zone, it's best to wait and see how the market place reacts in and around that verbal price level, paying detail attention to a possible retest that may possibly 'fake out' out traders and 'weed out' terminate losses in these areas.

The screenshot in a higher place is a typical case of this. Discover the first dip below the xxx line along the first vertical line. The market and so had a minor pullback, so eventually dipped lower than the previous low it made, except that it didn't go below the 30 line as it did previously. This was a sign that the momentum was dying, and all that is needed in situations similar this is entering at the right fourth dimension.

The idea is pretty simple: you really simply want to buy or sell at a place where in that location is very fiddling momentum. The indicator firstly shows areas where momentum is at its highest, just over a menses of fourth dimension, the momentum slowly dies down, yet the market tends to test these areas a few times similar it did in the previous example. It'due south all about seeing if there is still momentum in the surface area when it does retest or not. This is a whole new way to look at oversold and overbought more cleverly rather than the conventional knowledge.

Summary

The QQE Indicator For MT5 is a great cousin of the RSI, and when used strategically with divergence and the new manner of viewing overbought/oversold, it tin can be a powerful method to get in some profitable trading opportunities. Happy trading!

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Source: https://www.perfecttrendsystem.com/blog_mt5/en/qqe-indicator-for-mt5