Trading with Iq Option QStick Indicator
Trading with QStick Indicator — Tips & Strategies
There are many trend-following indicators and most of them have almost the same function. They help you spot the trend and predict its future direction. Yet, every indicator does it in a different way. You can use QStick if you need an easy to follow, one-line indicator.
How does it work?
The concept of the indicator is simple. QStick is a moving average of the difference between the closing and the opening price of the asset.Therefore, it is a curve that goes up or down and it can be above or below the zero line. QStick is at zero when closing and opening prices are the same. This can be in two cases: 1) when the price of the asset has not changed for a certain number of periods or 2) when the asset price has changed but then came back to the position where it has been before. When QStick is above the zero line, the closing prices are higher than the opening price and this can be when an uptrend appears. Vice versa, QStick is below the zero line when the opening prices are higher than the closing ones, which means that there is a downtrend.
How to apply in trading?
QStick is an easy to follow trend-following indicator, which has some advantages and disadvantages. It is not difficult understand and start using it, its readings are clean, and it may be quite helpful when it is combined with other indicators. Because it is a lagging indicator, it doesn’t make a prediction for the future price movement and therefore it has a higher accuracy than leading indicators. However, it is difficult to use only QStick because of the absence of predictive abilities, because it gives limited information on the nature of price movements and, as it was already mentioned above, because it is a lagging indicator.
Do you now want to use this indicator ? It can be effective when it used with an oscillator and a volume indicator to identify entry points and find strong positive and negative trends on the market. The oscillator in this case can be used to give the first signal, that is then checked with the help of QStick. A volume indicator can help identify the beginning or the end of the current trend. If you use some indicators of different categories, you can lower the risk of a false alarm, but you can’t get fully rid of them. Keep in mind that any indicator and QStick too are not able to give accurate signals all the time. You have to double check all the information you receive from them on your own.
No matter for what purpose you are using QStick, you need to double check the signals of QStick on various timeframes or you can check it using other indicators.
How to set up?
When you work with IQ Option, it is easy to set up the QStick indicator. Here is what you need to do to start using it:
1. Click on the ‘Indicators’ button in the left bottom corner of the screen and go to the ‘Trend’ tab
2. Select ‘QStick’ from the list of indicators
3. Without changing the default setting click the ‘Apply’ button. Professional traders can set the settings how it is more comfortable for them because they understand the idea of the indicator and how it is calculated.
You can now use the QStick indicator!
Now you can use QStick with other indicators. Go to the trading platform and try it yourself!