Quarters Theory for Mapping Price Levels and Trading Ranges
Summary
The document describes Quarters Theory, which divides price movement into four zones above and below a chosen base level. It lists possible bases such as recent daily, weekly, or monthly prices, period opens, and a user-defined level. Quarter boundaries and midpoint lines are presented as possible support, resistance, reversal, and range-trading reference points.
The proposed interpretation treats the upper zones as bullish and the lower zones as bearish, with transitions between zones potentially signaling a change in trend. The indicator is described as supporting multiple asset types and adjusting pip calculations for different symbol formats. However, the text provides no performance evidence, parameter guidance, or rules for confirming signals and managing risk. The stated applications are conceptual and should not be read as validated trading results.
Key ideas
- The method divides price into four zones around a selected base level.
- The base can be drawn from recent closes, period opens, or a custom price.
- Quarter boundaries and midpoints are suggested as support, resistance, and reversal references.
- Upper and lower quarters are associated with bullish and bearish bias, respectively.
- The document offers no testing evidence or detailed risk rules.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.