The Quick stick or Qstick Indicator was designed by scientist, inventor, author, and trader Tushar Chande as a method to quantify candlestick charts.

Chande has a Ph.D. in engineering and holds nine U.S. patents.

Chande and Stanley Kroll co-authored the widely acclaimed book The New Technical Trader, he also wrote Beyond Technical Analysis.

He is a regular contributer to Stocks and Commodities magazine and has also published numerous papers in engineering journals and is widely recognized for his expertise in designing innovative trading systems.

So from that introduction you can see he is a pretty smart guy. In my opinion the Qstick indicator is his finest piece of work.

Interpretation

The distance between the open and close prices lies at the heart of candlestick charting. For those unfamiliar with candlestick charting, the body of a candlestick is black if today's close is less than the open; it is white if today's close is greater than the open. A majority of white candlesticks over a specified range is considered bullish. Whereas a majority of black candlesticks over a specified range is considered bearish.

• Quick stick values below zero indicate a majority of black candlesticks (over the time periods specified) and therefore a bearish bias for the security.

• Qstick values above zero indicate a majority of white candlesticks (over the time periods specified) and therefore a bullish bias for the security.

• The Quickstick indicator can identify overbought and oversold conditions.
   

There are several ways to trade the Quick stick indicator:

• Crossovers. Buy when the indicator crosses above zero. Sell when it crosses below zero.

• Extreme Levels. Buy when the Qstick indicator is at an extremely low level and turning up.

• Sell when the Qstick indicator is at an extremely high level and turning down.

• You may even want to plot a short-term moving average on the Qstick to serve as a trigger line.

• Divergences. Buy when the Qstick is moving up and prices are moving down.

• Sell when the Qstick is moving down and prices are moving up.

• You may want to consider waiting for the price to confirm the new direction before placing the trade.

If you need any other free indicators in easy language please view the list available here List of free Easy Language indicators, functions and strategies

    Qstick > 0 Signifies an up trend, Qstick < 0 Signifies a down trend.

 Signals the end of the uptrend in good time...... 

Quick stick indicator ELA code is available free if you score above 1050 in the Weekly Trading IQ game

To qualify for your free Volume flow indicator ela file, just create a free account and score 1050 or greater in the weekly contest

 then drop me an email with your account name. You will receive the indicator shortly after.

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• The Qstick function can be used in system signals

• Can be used to validate trends

• Measures extreme overbought and oversold levels (as an oscillator

• Can be used as a divergence indicator

• Works in any time frame ( Weekly, Daily, Hourly, Minute etc )

• Real-time or delayed prices

• Does not require volume

          Indicator + function

A Simple and yet very efficient way of defining if a trend is in a bull or bear phase. Probably the best piece of work that Chande ever turned out, and yet seemingly forgotten by the whole world.

Setting lengths to 20 or more makes for a smooth analysis of trend, and the crossing of zero indicates trend direction.

See how early it signalled a bear move in the example when it crossed zero. Can be used as an short term oscillator with lengths less than 10 and often gives very early signals.

FREE click here to request code

Stocks, Futures, Bonds, Forex, Indices etc

Author: Tushar Chande. ( Protected EL code)