This indicator is a simple quantitative elaboration of the principle for which the open-close range, i.e. the real body, constitutes the most significant element of candlestick analysis.

The difference between opening and closing can be considered a measure of the IntraDay momentum; this information can be easily processed to build a trend following indicator.

The QStick can therefore be defined as an n-day moving average of the IntraDay market strength:

QSTICK = MovingAverage of ( C - O ) for NP periods

where:

QSTICK = Value of the QSTICK

C = current closing

O = opening

NP = number of indicator periods

Of course, the type of moving average and its span will depend on the type of analysis, short or long term and the type of market; the inventors of the indicator recommend a domain of five days for short analysis of futures markets and a domain of twenty days for a medium term analysis.

When the QStick is turning up or moving higher, it could be indicative of a bullish move.

Conversely, when the QStick is turning down or moving lower it can be indicative of a bearish move.