Qstick Indicator Meaning,
Types, Examples, and
it's Calculations

What is Qstick Indicator ?

Tushar Chande created the Qstick indicator, a technical analysis tool, to quantitatively pinpoint trends on a price chart. It is computed by averaging the difference between the opening and closing prices over a period of 'n'. When the Qstick value is more than zero, it indicates that purchasing pressure has been building since most of the previous 'n' days have been up.

Another name for the Qstick Indicator is Quick Stick. It is not commonly found in trading and charting programs.


  • The difference between closing and starting prices is converted into a moving average by the QStick.
  • An increasing indication indicates that, on average, the price is closing higher than it started.
  • On average, a declining QStick indicates that the price is ending lower than it opened.
  • Trade signals based on zero-line or signal-line crossovers can be produced using the QStick.

  • Formula for QStick Indicator:

    QSI = EMA or SMA of (Close−Open)


    EMA = Exponential moving average

    SMA = Simple Moving Average

    Close = Closing Price of Period

    Open = Opening Price of Period

    How to Calculate Qstick Indicator

  • Keep track of any variations between the closing and opening prices for each period.
  • Select the number of periods to be used in the SMA or EMA.
  • For the purpose of determining the general trend, the indicator will be smoother and include less signals the longer periods employed.
  • As soon as there are sufficient (close-open) data points, compute the EMA or SMA.
  • One option is to compute a SMA using the Qstick results. Thus, a signal line is produced. A common period for signal lines is three.

  • Understanding about Qstick Indicator

    By averaging the difference between closing and starting prices, the QStick gauges the amount of buying and selling pressure>. The indicator falls down when the price closes lower on average than it opens. The indicator rises when the price closes higher than it opened on average.

    The Qstick passes over the zero line to indicate a transaction. As purchasing pressure is building, crossing above zero is interpreted as a buy signal; conversely, when the indicator goes below zero, it is interpreted as a sell signal.

    To serve as a signal line, a 'n' period moving average of the Qstick values can also be drawn. The Qstick value then passes across the trigger line, generating transaction signals. Signal line 'n' periods often have three.

    The price may be beginning to climb when the QSticks go over the signal line, which suggests that there are more closes above the open. The market is beginning to experience more closures below the open when the Qstick crosses below the signal line. The price could be beginning to decline.

    Divergence may also be emphasized by the indicator. Price increases that are accompanied by a declining QStick suggest that momentum may be flagging. Price declines indicate that purchasing momentum in the market may happen shortly when QStick rises. However, abnormalities may be produced by the indicator. Only intraday price movement is taken into consideration; gaps are ignored. Therefore, even if the price may have finished higher than the previous close, it is still considered bearish if the price gaps higher but closes below the open. May may lead to divergence, which is not always a sign of a timely price turnaround.

    Example of Qstick indicator

    Daily Candlestick for 10 Day periods

    Date Open Close
    Day 1 10 12
    Day 2 13 15
    Day 3 14 17
    Day 4 16 20
    Day 5 14 16
    Day 6 12 10
    Day 7 10 08
    Day 8 08 05
    Day 9 05 06
    Day 10 04 07

    We'll figure out Stock A's two-day simple moving average below. Thus, these are the crucial variables for our Qstick indicator:

  • Chart Time Frame is Daily
  • Moving Average length is two days
  • The type of moving average is Simple moving average

  • Date Close-Open
    Day 1 2
    Day 2 2
    Day 3 3
    Day 4 4
    Day 5 2
    Day 6 -2
    Day 7 -2
    Day 8 -3
    Day 9 1
    Day 10 3

    Plotting the values of the Qstick indicator would yield the following chart, which is commonly used in technical analysis:

    Interpreting the Qstick Indicator

    A Qstick indication > 0 in technical analysis denotes rising buying pressure, whereas a Qstick indicator < 0 denotes rising selling pressure. Plotting the Qstick indicator allows for the identification of trends. As such:

  • When zero crosses above, a BUY signal is generated.
  • When it crosses below zero, a SELL signal is sent.


    When the Qstick indicator is reversing off of an extreme high, it is a signal to SELL, and when the Qstick indicator is reversing off an extreme low, it is a signal to BUY.


  • The Qstick indicator is a technical momentum indicator used to identify a stock’s trend by looking at the moving average of the difference between a stock’s closing and opening price.

  • A Qstick indicator > 0 indicates increasing buying pressure, and a Qstick indicator < 0 indicates increasing selling pressure.

  • The calculation of the Qstick indicator requires the following parameters: (1) Chart time frame, (2) Moving average length, and (3) Type of moving average.

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