QStick: Measuring the Average Close-to-Open Price Difference
Summary
QStick is a simple moving average of the difference between each period’s close and open. A positive reading indicates that upward-bodied candles have predominated over the chosen interval, while a negative reading indicates that downward-bodied candles have predominated. The document presents it as a compact alternative way to summarize candlestick direction.
The indicator can use different smoothing algorithms, and its phase or related parameters do not have the same interpretation across those algorithms. The article notes examples for JMA, T3, VIDYA, and AMA, including fixed AMA settings. It describes the indicator and its implementation context but offers no trading rules, backtest, or evidence that QStick readings forecast returns. Its usefulness depends on the selected averaging method and period.
Key ideas
- QStick averages the close-minus-open price difference over a selected period.
- Positive readings indicate a prevalence of rising-bodied candles, while negative readings indicate more falling-bodied candles.
- Different smoothing algorithms can be used, and their phase-related parameters are not interchangeable.
- The document explains the indicator’s calculation and implementation context but supplies no performance evidence.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.