The QQE Histogram is an MT4 momentum indicator developed to aid forex day traders with real-time overbought/oversold signals.
This indicator makes swing trading simple for the short-term market speculators. It has been observed that the QQE histo-bar can identify the price swing areas correctly, even during choppy or highly volatile market conditions.
According to market experts, the QQE histogram is suitable for all MT4 timeframes and applicable for trading any forex currency pairs.
QQE Histogram Overview
The QQE histogram is a modified version of the original QQE indicator. The original version was only used to show the QQE values for determining the overbought/oversold market. In contrast, the custom histogram edition demonstrates a clear overview of the momentum status.
Besides, it lets you gather a hint about possible changes in the strength or weakness of the market trends by changing its histogram bar’s colors.
QQE Histogram Explanation
Unlike other momentum oscillators, the QQE histogram uses the 10 and -10 levels to signal the OB/OS conditions of the price.
Apart from QQE bars, this indicator also includes a 14-period RSI that offers a double confirmation about the possible price reversals.
When both QQE and RSI show positive value, we consider the momentum s bullish. Th the indicator value moves above 10, and the bars turn red when the market turns overbought.
Conversely, the QQE bars drop below the zero-line along with the RSI slope when the momentum turns bearish.
We’ll consider the market as oversold when the QQE bars move lower than the -10 level and show up in red color.
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QQE Histogram: Buy Conditions
- The QQE histogram starts rising from the zero-line
- The RSI slope carries a positive value
- Exit long when the indicator value drops below 10
QQE Histogram: Sell Conditions
- The QQE histogram bars drop below the zero-line
- The RSI shows a negative value
- Exit short after the indicator value manages to rise above -10