Technical Indicators > Chande's QStick

Overview

The Chande QStick was developed by Tushar Chande to help identify market trends. It is a moving average of the difference between the opening and closing prices.

TI_ChandesQStick

Interpretation

Signals can be generated by identifying peaks and troughs, zero line crossings, and/or divergences between the QStick and the instrument's price.

Implementation

The indicator is displayed as a bi-color histogram to make identifying peaks, troughs, and zero line crossings easier.

Construction

1. Click the Ribbon>Technical Analysis menu>Indicators group>Indicator Builder command>Indicator Builder window's [New] button

2. In the General tab, type the following text for each field:

Name: Chande's QStick

Function Name Alias: vt_ChandeQS

Label Mask: Chande's QStick (%periods%,%mat%) | Up: %CQS_Up%, Down: %CQS_Down%

Placement: New Frame

Data Inspection Alias: Chande's QStick

3. In the Input Variable(s) tab, create the following variables:

[New] button...

Name: periods

Display Name: QStick Periods

Type: integer

Default: 8

[New] button...

Name: mat

Display Name: QStick Type

Type: MA Type

Default: Simple

4. In the Output Variable(s) tab, create the following variables:

[New] button...

Var Name: CQS_Up

Name: (CQS-Up)

Line Color: green

Line Width: thin

Line Type: histogram

[New] button...

Var Name: CQS_Down

Name: (CQS-Down)

Line Color: red

Line Width: thin

Line Type: histogram

5. In the Horizontal Line tab, create the following lines:

[New] button...

Value: +0.0000

Color: black

Width: thin

Type: dashed

6. In the Formula tab, copy and paste the following formula:

CQS:= mov((C-O),periods,mat);

CQS_Up:= if(CQS>ref(CQS,-1),CQS,CQS);

CQS_Down:= if(CQS<ref(CQS,-1),CQS,null);

7. Click the "Save" icon to finish building Chande's QStick indicator.