A QQE Variant Using Smoothed RSI and Fixed Thresholds

Summary

This short description explains a variant of the Quantitative Qualitative Estimator, an indicator built around a smoothed RSI and volatility-based trailing levels in its original form. The variant replaces those moving trailing levels with fixed thresholds, which are intended to make overbought and oversold conditions easier to interpret.

It also substitutes RSX, described as a smoother RSI with reduced lag, to refine the indicator's signals. The document explains the indicator design but gives no threshold values, entry or exit rules, market examples, or test results. Consequently, it does not establish whether the altered levels or RSX improve trading decisions, and practical use would require specifying parameters and evaluating signals across relevant markets and conditions.

Key ideas

• The original QQE combines smoothed RSI with fast and slow volatility-based trailing levels.
• This variant uses fixed levels to assess overbought and oversold conditions.
• It uses RSX in place of RSI to seek smoother signals with less lag.
• No parameter settings, trading rules, or empirical results are provided.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.