QStick Indicator [QStick]

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The QStick Indicator function determines the momentum of a financial data series using a moving average of the closing versus opening prices over a given period of time. Parameters ------------------ Open          The opening price of the security for each given day. Close          The closing price of the security for each given day. Period         The number of bars of data to include in the average, including the current value.                    For example, a period of 3 includes the current value and the two previous values. Note that while this function is intended for use with these specific values, any values can be used for these parameters, including other price values and averaged prices. Indicator Value ------------------------ The QStick indicator is calculated by taking a moving average of the difference between the closing price and the opening price for a given period. Since it uses a moving average, the QStick indicator is not defined at the beginning of a data series until there are enough values to fill the period. Usage ----------- The QStick indicator was developed to quantify the information displayed in candlestick charting. In candlestick charting, white candlesticks indicate an increase in price from open to close, while colored candlesticks indicate a decrease. Segments of the chart with mostly white candlesticks are typically uptrending and segments with mostly black candlesticks are typically downtrending. To quantify this mathematically, the QStick indicator calculates the average difference between the closing price and the opening price. As with other momentum indicators, the QStick indicator can be traded in several ways. Entry/Exit signals could be generated when the value crosses zero or crosses a moving average of itself. In addition, divergences from the price can indicate overbought/oversold conditions, which may signify an upcoming trend reversal. Source ------------ This indicator is based on an entry in "Technical Analysis From A To Z" by Steven B. Achelis. It was originally developed by Tushar Chande and presented in his book "The New Technical Trader".