The Volensy QQE MOD indicator is an RSI-based momentum detector built on the Qualitative Quantitative Estimation (QQE) framework. It identifies shifts in market momentum by analyzing the relationship between a smoothed RSI line and a dynamic signal line, generating clear LONG and SHORT signals when crossovers occur above or below defined momentum thresholds. Designed for traders who want to catch momentum swings early, the QQE MOD is one of the most versatile indicators in the Volensy suite, performing well on trending markets across all asset classes.

Overview

The QQE MOD takes the standard Relative Strength Index (RSI) and applies a series of smoothing and filtering steps to produce a more refined momentum reading. Rather than simply measuring overbought and oversold conditions like a raw RSI, the QQE system creates two lines — the QQE line and the signal line — whose crossovers indicate momentum direction changes. Volensy’s implementation adds momentum threshold filtering to reduce false signals during low-volatility periods, a built-in TP/SL system, and a real-time info panel for live performance tracking.

This indicator suits traders who focus on momentum and trend continuation strategies. It excels at identifying the start of new momentum waves and confirming trend direction before entering a position.

How It Works

The QQE Framework

The Qualitative Quantitative Estimation process works in several stages:

1. RSI Calculation — A standard RSI is calculated using a configurable period (default: 14). This measures the relative strength of recent price changes.

1. Exponential Smoothing — The raw RSI is smoothed using an exponential moving average with a configurable smoothing factor. This reduces the noise inherent in raw RSI readings and produces a cleaner momentum curve called the QQE line.

1. Signal Line Generation — A second smoothed line is derived from the QQE line, acting as a trigger. This is the signal line.

1. Crossover Detection — When the QQE line crosses above the signal line, bullish momentum is emerging. When it crosses below, bearish momentum is taking hold.

1. Momentum Threshold Filtering — Not all crossovers are created equal. The indicator applies momentum threshold filters to ensure that signals only fire when the crossover occurs with sufficient strength. Weak crossovers in choppy, range-bound markets are filtered out, reducing false signals significantly.

Signal Generation

Based on the QQE crossover and threshold logic:

• LONG Signal — Generated when the QQE line crosses above the signal line with momentum strength exceeding the bullish threshold. A green LONG label appears on the chart at the signal candle.
• SHORT Signal — Generated when the QQE line crosses below the signal line with momentum strength exceeding the bearish threshold. A red SHORT label appears on the chart at the signal candle.

Once a signal is generated, the TP/SL levels are calculated from the entry price (signal candle close), and the info panel begins tracking the trade in real time.

Key Features

• RSI-based momentum detection with exponential smoothing for noise reduction
• QQE line and signal line crossovers for precise momentum shift identification
• Momentum threshold filtering to eliminate weak signals in choppy markets
• Three-tier Take Profit system: TP1 at 0.5%, TP2 at 1.0%, TP3 at 1.5%
• Fixed 2% Stop Loss for defined risk on every trade
• Real-time info panel displaying signal direction, entry price, PnL, and success rate
• Bar coloring that changes candle colors based on the current signal direction (green for bullish, red for bearish)
• Configurable alert system for LONG, SHORT, TP, and SL events
• Multi-market compatibility — works on crypto, forex, stocks, and commodities

Configuration / Settings

The QQE MOD indicator offers several configurable parameters accessible through the TradingView indicator settings panel:

Input Parameters

| Parameter | Default | Description |
|———–|———|————-|
| RSI Period | 14 | The lookback period for RSI calculation. Lower values make the indicator more sensitive to recent price changes; higher values produce smoother readings. |
| Smoothing Factor | 5 | Controls the degree of exponential smoothing applied to the RSI. Higher values create a smoother QQE line with fewer signals; lower values produce more responsive but noisier output. |
| Momentum Threshold | Varies | The minimum crossover strength required to generate a signal. Increasing this value filters out more marginal signals, producing fewer but higher-confidence entries. |

Style Settings

| Setting | Description |
|———|————-|
| Bar Coloring | Toggle candlestick color changes on or off. When enabled, candles turn green during LONG signals and red during SHORT signals. |
| Signal Labels | Toggle the visibility of LONG and SHORT labels on the chart. |
| Info Panel Position | Choose which corner of the chart displays the info panel. |

Trading Signals

LONG Signals

A LONG label appears when:

• The QQE line crosses above the signal line
• The crossover momentum exceeds the bullish threshold
• The indicator confirms a shift from bearish to bullish momentum

What to do: Consider entering a long position at or near the signal candle’s close price. Set your Take Profit targets at TP1 (0.5%), TP2 (1.0%), and TP3 (1.5%) above entry. Place your Stop Loss at 2% below entry.

SHORT Signals

A SHORT label appears when:

• The QQE line crosses below the signal line
• The crossover momentum exceeds the bearish threshold
• The indicator confirms a shift from bullish to bearish momentum

What to do: Consider entering a short position at or near the signal candle’s close price. Set your Take Profit targets at TP1 (0.5%), TP2 (1.0%), and TP3 (1.5%) below entry. Place your Stop Loss at 2% above entry.

Bar Coloring

When bar coloring is enabled:

• Green candles indicate the indicator is in a bullish state (active LONG signal)
• Red candles indicate the indicator is in a bearish state (active SHORT signal)

Bar coloring gives you an at-a-glance view of the current momentum direction without needing to check the info panel.

Best Practices

Recommended Markets

• Cryptocurrency: BTC, ETH, and major altcoins — the volatility of crypto markets produces strong momentum swings that the QQE MOD captures effectively.
• Forex: Major and minor pairs (EUR/USD, GBP/JPY, etc.) — the QQE’s smoothing helps filter out the noise common in forex markets.
• Stocks: Large-cap and mid-cap equities with established trends.
• Commodities: Gold, oil, and other commodities with directional price behavior.

Recommended Timeframes

• 15-minute: Good for intraday momentum trading with frequent signals.
• 1-hour: Balanced signal frequency and reliability — a strong starting point.
• 4-hour: Fewer signals but higher quality, suited for swing trading.
• Daily: Best for position trading with strong directional conviction.

Tips for Best Results

1. Start with the 1-hour timeframe to get a feel for signal frequency and quality before moving to shorter or longer periods.
2. Use bar coloring as a quick visual filter. If candles are green, look for LONG setups. If red, look for SHORT setups or stay out of long positions.
3. Combine with support and resistance levels. A QQE LONG signal near a strong support zone carries more weight than one in the middle of a range.
4. Monitor the success rate in the info panel. If the success rate drops below 50% on a particular asset, consider switching to a different market or timeframe.
5. Avoid trading during low-volume periods (such as market open/close transitions or holiday sessions) when momentum signals may be unreliable.

*See also: Indicators Overview*
*See also: Understanding the TP/SL System*
*See also: Using the Info Panel*
*See also: RSI RMI with Info Panel* — Another RSI-based momentum indicator for comparison