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IQC Zone

Definition:

IQC Zone is a proprietary indicator developed by IQC Corporation, backtested over thirty years of historical data. It utilizes an advanced artificial intelligence (AI) algorithm to generate bullish and bearish signals. There are two zones on the charts: Bullish zone (blue/green) and Bearish zone (red)

Due to the algorithm's complexity, IQC Zone is only available to stocks with history of more than one year. For IPO stocks, there is not enough data to calculate IQC Zone, and the indicator is charted with gray colors until it has been publicly traded for one year's time.

In IQ Chart there is also an IQC Zone Green/Red ratio in the "Market" section of the software. This is a bullish/bearish ratio covering all publicly traded stocks on the NYSE, NASDAQ & AMEX. This can't be found anywhere else.

Interpretation:

IQC Zone is not an absolute buy or sell signal, but can be an important consideration to trading and investment decisions when integrated into an overall trading or investment approach.

Although there are many powerful methods for incorporating IQC Zone into an investment scheme, here are several more conventional interpretations of the indicator:

Market Climate

IQC Zone can be used to determine the appropriate climate when selecting stocks. If other indicators suggest an entry point while the security is in the bearish zone, one might consider delaying entry. However, if it is firmly within the bullish zone, entry may be warranted. The opposite conditions can hold true for determining a proper exit point.
Because IQC Zone is calculated at the end of day only, this interpretation is not well-suited for intraday or very short-term trading approaches.
The IQ Chart Green/Red Ratio found in IQ Chart by clicking on the "Market" button can be used as a bullish/bearish barometer for the entire U.S. market.

Market Timing

IQC Zone can be used as an intermediate-term trend indicator when the color changes.

When the indicator changes from bearish to bullish, one might consider entering the market when verified with other indicators.
When the indicator changes from bullish to bearish, one might consider exiting the market when verified with other indicators.

Risk Minimizing

When the color changes under certain circumstances, it may indicate a trend reversal or period of investor uncertainty.

If the colors are fluctuating rapidly in a short or intermediate time frame, one may consider protecting current profits by standing aside as the market smooths.
When the indicator turns from a prolonged bullish period to bearish, one may consider closing any open positions until a resumption of the trend or a trend reversal is confirmed.

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