Jurik QQE: Smoothed RSI Bands for Trend Regimes and Pullbacks
Summary
The document explains a QQE oscillator that smooths RSI and surrounds it with fast and slow adaptive trailing bands. It describes three selectable RSI inputs: Wilder’s RSI, Jurik RSX, and Rapid RSI. The band widths derive from a twice-smoothed measure of changes in the RSI, scaled by separate fast and slow factors. A freeze rule holds a band at its prior level when a crossing would otherwise make it reverse on minor movement. The RSI line is colored by its position relative to both bands: above both signals bullish momentum, below both bearish momentum, and between them a transition state.
The proposed uses include filtering trades by regime, taking pullback entries on fast-band recrosses when aligned with the slow regime, and watching for divergences or extreme readings. It also suggests a volatility filter to avoid low-volatility periods. The article provides implementation details and parameter defaults, but no backtest, instrument-specific validation, or quantified evidence for its claims about signal reliability or expectancy. It cautions against fading extremes in trending markets and notes that the default multipliers were not rigorously optimized.
Key ideas
- QQE applies adaptive fast and slow trailing bands to a smoothed RSI.
- The RSI can use Wilder, Jurik RSX, or Rapid calculations.
- A freeze rule prevents band reversals on minor oscillator noise.
- The line’s position relative to both bands defines bullish, bearish, or transitional states.
- Fast-band recrosses are proposed as pullback entries when they agree with the slow regime.
- The described trading applications are not supported by reported backtests or quantified results.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.