Quarters Theory: Drawing Price Levels in Four-Part Ranges

Summary

The article introduces Quarters Theory as a way to divide a major price interval into four equal large-quarter segments, which are treated as potential support, resistance, pause, or acceleration areas. It describes an MQL5 chart script that locates the major interval surrounding the current bid and draws its boundaries and subdivisions. Optional settings control whether large-quarter lines, smaller subdivisions, and nearby overshoot or undershoot markers appear, while inputs customize their colors and line styles.

This is the first installment in a planned toolkit, focused on visualizing levels rather than generating or testing trade signals. The article gives an example major interval for a currency pair and describes the theory’s 250-pip progression, but provides no market study, backtest, or evidence that the marked levels predict reversals or continuation. The script’s output is a configurable chart overlay; traders would need to assess the levels and any trading rules independently.

Key ideas

• The theory divides a major price interval into four equal large-quarter segments.
• The script finds the major interval around the current bid and draws its boundaries and subdivisions.
• Optional settings control small-quarter lines and overshoot or undershoot markers.
• Line colors, styles, and widths can be configured to distinguish level types.
• The article presents a drawing tool, not evidence that quarter levels produce profitable signals.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.