QQE¶
Indicators · Momentum
Quantitative Qualitative Estimation — smoothed RSI + SAR-like trail.
QQE (Quantitative Qualitative Estimation) is a smoothed-RSI system with a built-in trailing line, designed to give cleaner momentum signals than raw RSI. It takes RSI, smooths it to kill the jitter, and then wraps it in a volatility-based trailing band that behaves like a Parabolic SAR for momentum. The crossover of the smoothed RSI and its trailing line is the signal — and because both are filtered, it produces far fewer false flips than trading raw RSI crosses.
How it works¶
The block computes RSI over the RSI period (14), smooths it with an EMA over the Smoothing factor (5) to get the RSI MA fast line, then builds a Trail line: a volatility-derived band (scaled by the Width factor, default 4.236 — a Fibonacci constant) that trails the smoothed RSI and only flips when momentum decisively reverses. When the fast line crosses its trailing line, momentum has turned. Both plot in a sub-pane.
When to use it¶
Use QQE as a filtered momentum-and-trend tool. The fast-line-crosses-trail event is its core signal, cleaner than an RSI threshold cross because of the double filtering. It works both as a trend-following trigger (trade the crossover in the trend direction) and, watching the smoothed RSI relative to the 50 level, as a momentum-bias gauge. The width factor tunes how tightly the trail hugs — wider means fewer, later, more reliable flips. Like all momentum tools it's weaker in dead ranges where the lines knot together.
Example¶
A filtered momentum entry: wire bars into QQE and take the fast-line-crosses-trail-up event via a Crosses Above into a Buy Signal, gated by a higher-timeframe EMA bias through an And. The smoothing keeps you out of the noise a raw RSI cross would react to. Backtest in the Tester.
Tips & gotchas¶
- Smoothed RSI + a SAR-like trail — cleaner crosses than raw RSI thresholds.
- The fast/trail cross is the signal, not an RSI level.
- Width factor tunes the trail — wider = fewer, more reliable flips (4.236 is the classic).
- Knots up in ranges — pair with a trend filter.
Related blocks¶
Inputs¶
| Socket | Type | What to wire in |
|---|---|---|
| Bars | bars |
OHLC bars (close required) |
Outputs¶
| Output | Type | Plots as | Description |
|---|---|---|---|
| RSI MA | series |
Line · sub-pane | EMA-smoothed RSI (fast line) |
| Trail | series |
Line · sub-pane | SAR-like trailing line |
Parameters¶
| Parameter | Type | Default | What it does |
|---|---|---|---|
| RSI period | number · 2–200 | 14 |
Window for the underlying RSI |
| Smoothing | number · 1–50 | 5 |
EMA window applied to the RSI |
| Width factor | number · 0.5–20.0 | 4.236 |
Multiplier on the volatility-derived band |
| Fast line color | colour | #42a5f5 |
|
| Trail line color | colour | #ffb74d |
Reference auto-generated from the block catalog · category Indicators.