Qstick Indicator

A technical indicator developed by Tushar Chande to numerically identify trends in candlestick charting. It is calculated by taking an 'n' period moving average of the difference between the open and closing prices. A Qstick value greater than zero means that the majority of the last 'n' days have been up, indicating that buying pressure has been increasing.

Investopedia Says:

Transaction signals come from when the Qstick indicator crosses through the zero line. Crossing above zero is used as the entry signal because it is indicating that buying pressure is increasing, while sell signals come from the indicator crossing down through zero. In addition, an 'n' period moving average of the Qstick values can be drawn to act as a signal line. Transaction signals are then generated when the Qstick value crosses through the trigger line.

Related Links:
Discover the components and basic patterns of this ancient technical-analysis technique. The Art of Candlestick Charting - Part 1
Learn why crowd psychology is the reason this technique works, and discover how to analyze 'hammers and 'hanging men'. The Art of Candlestick Charting - Part 2
Take a look at continuation patterns and how they can confirm or deny trends. The Art of Candlestick Charting - Part 3
Learn about more continuation patterns on the bullish and bearish sides: the engulfing pattern, harami and harami cross. The Art of Candlestick Charting - Part 4