QStick Node
Quick Stick OHLC Momentum
Overview
QStick (Quick Stick) is a momentum indicator derived directly from the bar's OHLC structure, measuring the relationship between opening and closing price relative to the day's range. It captures institutional order flow patterns - where buyers/sellers dominated within each bar. A QStick trending above zero indicates consistent buying pressure, below zero indicates selling pressure. Simple but powerful for revealing directional conviction.
Unlike closed-only momentum, QStick uses all four prices to create a more complete picture of each bar's character. This OHLC-based approach reveals momentum that close-only analysis misses, making it excellent for identifying accumulation and distribution patterns before they appear in price.
Formula
QStick measures open-to-close momentum within the day's range:
Parameters
| Parameter | Type | Default | Description |
|---|---|---|---|
| period | number | 14 | SMA smoothing period for QStick. |
| source | Node | Auto | The root data source node. |
💡 Tip: Period 5-7 for fast action, 14 for medium trend, 21 for slower confirmation. Most traders use 14 for daily charts. The OHLC data makes this work across all timeframes without adjustment needed.
Common Use Cases
1. Accumulation/Distribution Detection
Rising QStick while price consolidates = smart money accumulating before push higher. Falling QStick with price holding = distribution before decline. These accumulations/distributions precede big moves by days or weeks.
2. Divergence Trading
Price makes new highs but QStick makes lower highs = bearish divergence. Momentum isn't confirming new highs. This is an early warning of weakness, often preceding 5-10% pullbacks within larger uptrends.
3. Opening Price Analysis
High opening with close near low = distribution day (smart sellers). Low opening with close near high = accumulation day (smart buyers). Strings of accumulation days suggest stronger move coming than what price alone shows.
4. Zero Crossover Signals
QStick crossing above zero = accumulation starting. Crossing below zero = distribution starting. These crossovers often precede price breakouts. Combined with support/resistance, zero crosses create powerful entry setups.
Advantages & Limitations
Advantages
- Uses OHLC data for complete bar analysis
- Reveals accumulation/distribution patterns
- Simple calculation, easy to understand
- Works across all timeframes
- Good for divergence and trend detection
Limitations
- Can be choppy on narrow-range days
- Gaps distort the range relationship
- Less effective in highly volatile markets
- Needs confirmation from other indicators
- Not useful for absolute momentum magnitude
Tips & Best Practices
💡 Watch Opening Gap Impact
Gap ups/downs change the interpretation. A gap-up day's close-to-high relationship is different than non-gap day. Look at raw QStick values to see the opening context, not just smoothed line.
📊 Combine with Volume
High QStick with high volume = powerful accumulation. High QStick with low volume = weak push. Volume amplifies QStick's message - always check both together.
⚡ Look for Consecutive Pattern
3+ bars with QStick above +50 = strong accumulation phase. 3+ bars with QStick below -50 = strong distribution. These streaks predict move better than isolated readings.
⚠️ Exclude Gap Days from Analysis
Gap days distort the high-low range making QStick unreliable. When analyzing QStick patterns, skip gap days and focus on normal range days for cleaner signals.
Example Strategy
Accumulation/distribution strategy using QStick:
QStick Accumulation Breakout Trade
1Setup Phase
- Price consolidating near support level
- QStick rising (accumulation starting)
- Volume declining (quiet accumulation)
2Entry Signal
- Price breaks above consolidation resistance
- QStick crosses above zero (momentum confirmation)
- Volume surges on breakout
3Exit Condition
- QStick falls below 0 (distribution begins)
- Price closes below breakout point
- Or take profits at technical target
4Risk Rules
- Stop below the accumulation support
- Target 3-5% profit on accumulation breakouts
- Risk max 1.5% per trade