Introduction to the Quarters Theory Indicator
The Quarters Theory is a trading strategy developed by Ilian Yotov. It is a market flow type of strategy which uses fixed distances in order to help traders identify possible reversal levels. It is also a versatile strategy since it allows for continuation trades as well as reversal trades. The Quarters Theory Indicator was developed to support the Quarters Theory Strategy.
What is the Quarters Theory Indicator?
The Quarters Theory Indicator is a custom technical indicator which was developed to help traders identify support and resistance levels based on the Quarters Theory.
This indicator plots horizontal lines with a predetermined distance. These lines are spaced out in quarters. There are four Large Quarters divided by black lines. There are also smaller quarters within each large quarter divided by a yellow line and two green lines.
How the Quarters Theory Indicator Works?
The Quarters Theory Indicator uses a complex algorithm to identify the starting point of the Quarters Theory lines.
The lines are then spaced out by a fixed whole number in pips, which is preset at 100 pips. This is the distance between each black line forming the large quarters.
The space between each large quarter is then divided into four smaller quarters which would have a distance of 25 pips. This would be the space between the yellow and green lines.
How to use the Quarters Theory Indicator for MT4
The Quarters Theory Indicator has several variables that can be modified within its settings.
“Distance between majors” refers to the number of pips between each black line.
“Start from bar” allows traders to modify where the Quarters Theory lines would start.
“How many bars” refers to the number of bars from which the Quarters Theory lines would be based on.
“Disable quarters” allows traders to disable the smaller quarters and change it to halves.
“Quarters style” allows traders to change the style of line the indicator plots.
This indicator can be used as support and resistance levels in confluence with other trade setups. It could be used in confluence with double tops and bottoms. It can also be used as price rejection levels on a continuation price pattern after a pullback. It could also be used as a basic support and resistance level especially if price action had already reversed on the level historically.
Buy Trade Setup
When to Enter?
Identify a bullish trade setup. Open a buy order as soon as price action shows signs of a bullish price rejection on the level of the Quarters Theory lines. Set the stop loss below the setup.
When to Exit?
Set the take profit target on the next major Quarters Theory line.
Sell Trade Setup
When to Enter?
Identify a bearish trade setup. Open a sell order as soon as price action shows signs of a bearish price rejection on the level of the Quarters Theory lines. Set the stop loss above the setup.
When to Exit?
Set the take profit target on the next major Quarters Theory line.
Conclusion
The Quarters Theory Strategy has created some stir among traders due to its recent successes. The Quarters Theory Indicator is merely a support for the strategy.
Trading using this strategy and indicator however still does require some practice since its trade setups are also based on price patterns and other technical analysis trade setups.
MT4 Indicators – Download Instructions
Quarters Theory Indicator for MT4 is a Metatrader 4 (MT4) indicator and the essence of this technical indicator is to transform the accumulated history data.
Quarters Theory Indicator for MT4 provides for an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.
Based on this information, traders can assume further price movement and adjust their strategy accordingly.
Recommended Forex Metatrader 5 Trading Platform
- Free $30 To Start Trading Instantly
- Deposit Bonus up to $5,000
- Unlimited Loyalty Program
- Awards Winning Trading Broker
How to install Quarters Theory Indicator for MT4.mq4?
- Download Quarters Theory Indicator for MT4.mq4
- Copy Quarters Theory Indicator for MT4.mq4 to your Metatrader Directory / experts / indicators /
- Start or restart your Metatrader 4 Client
- Select Chart and Timeframe where you want to test your MT4 indicators
- Search “Custom Indicators” in your Navigator mostly left in your Metatrader 4 Client
- Right click on Quarters Theory Indicator for MT4.mq4
- Attach to a chart
- Modify settings or press ok
- Indicator Quarters Theory Indicator for MT4.mq4 is available on your Chart
How to remove Quarters Theory Indicator for MT4.mq4 from your Metatrader Chart?
- Select the Chart where is the Indicator running in your Metatrader 4 Client
- Right click into the Chart
- “Indicators list”
- Select the Indicator and delete
Quarters Theory Indicator for MT4 (Free Download)
Click here below to download:
