This indicator is comprised by a smoothed and two trailing levels, based on – Fast Trailing Level (Fast TL – the maroon line on the chart above) and Slow Trailing Level (Slow TL – the blue line on the chart above).
The two are determined by calculating the (ATR) of the smoothed during a specified number of periods, after which a further ATR smoothing is applied with the use of an additional n-periods Wilders smoothing function.
Ultimately, the RSI’s smoothed ATR is multiplied by the Fast and Slow ATR Multipliers in order to determine the final Fast and Slow Trailing Levels.
Trading the QQE buy and sell signals:
crossover happens when Fast ATR TL crosses above Slow ATR TL. When this occurs a blue circle & blue candle will appear and a alert signal to buy is generated.
crossover happens when Slow ATR TL crosses above Fast ATR TL. When this occurs a maroon circle & maroon candle will appear and a alert signal to sell is generated.
Bullish/Bearish Divergence Background
Green background indicates
Red background indicates Divergence
Overbought and Oversold Conditions
An overbought condition occurs, when the QQE is at or above its 0.10 level.
An oversold condition occurs, when the QQE is at or below its -.10 level.
Bullish crossover happens when RSI crosses above Fast ATR TL . When this occurs a lime circle will appear and a alert signal to buy is generated.
RSI Sell Signal
Bearish crossover happens when RSI crosses below Fast ATR TL. When this occurs a orange circle will appear and a alert signal to sell is generated.
**RSI is Gray Line On Chart