📊 How Does it Work?

This indicator uses some advanced techniques to determine price reversals and filter them out with other indicators, such as oscillators (Stochastic RSI and etc.) and trend-based indicators such as EMA and others), but even after filtering signals with these tools Quantum Trend indicator then applies our own private algorithm, based on our modified z-score mertic, which reduces lag drastically and helps find good entries faster.

What algo is behind the signals?

For finding new entries we used RSI- and stochastic-based oscillators, which help us determine potential price reversal movements. When new entry is found, we filter it through our own stochastic RSI filter (takes stoch RSI's pivot points into account to find better entries; pivot points left and right bars are hard coded into the indicator) with our private indicators, based on close-to-close volatility filter methods, to understand whether or not entry valid enough. Why stochastic RSI? Because it is much less messy than most of other existing oscillators (by our own opinion and experience).

That was first filtering stage, now comes the second

.In the second phase we filter out signals even more with our own modified-standard-deviation-based indicators (not Bollinger Bands!) to determine whether or not price went above or below 2 sigma channel, which would mean that current price's movement is extremely rare (because for going above 2 sigma or below -2 sigma there is only 5% chance (classic Gaussian distribution)) and the reversal will probably happen soon.

If signal passed all two phases of filtering, it will be showed on the chart.

Over all, this indicator uses our own private indicators, based on some core concepts, which we described above (classic Gaussian distribution for choosing signals with nice reversal moments, close-to-close volatility for understanding if market is volatile enough to make a good move, modified z-score metric for reducing lag and finding entries faster, own stoch RSI filter with pivot points for reducing lag and finding good reversal moments and etc.)