Qstick Indicator

Overview

The Qstick indicator represents Tushar Chande's brilliant solution to quantifying candlestick analysis, introduced in his 1994 book "The New Technical Trader." By calculating a moving average of the difference between closing and opening prices (Close - Open), Qstick transforms the visual information contained in candlestick patterns into a numerical oscillator. When prices consistently close above their opens, creating white/green candles, Qstick rises above zero, indicating bullish pressure. Conversely, when prices close below their opens, forming black/red candles, Qstick falls below zero, signaling bearish dominance.

What makes Qstick particularly valuable is its ability to smooth out the noise of individual candles and reveal the underlying trend in market sentiment. Rather than analyzing each candlestick in isolation, Qstick aggregates the open-to-close behavior over multiple periods, typically using an exponential moving average for faster response to changes. The indicator oscillates around a zero line, with positive values indicating that buyers are consistently pushing prices higher by the close, while negative values show sellers are in control. Adding a signal line (usually a 3-period moving average of Qstick itself) creates crossover signals similar to MACD, providing clearer entry and exit points.

Interpretation & Trading Signals

Example Usage

Code examples will be available once the Rust implementation is complete.