Quarters Theory Indicator For MT4

Quarters Theory Indicator For MT4

Table Of Contents:

  1. Quarters Theory Indicator For MT4
  2. Trading ideas with the Quarters Theory Indicator For MT4
  3. Quarters Theory Indicator For MT4 - Buy Entries
  4. Quarters Theory Indicator For MT4 - Sell Entries
  5. Quarters Theory Indicator For MT4 - Conclusion

The Quarters Theory Indicator For MT4 is an indicator which is here to draw support and resistance levels for you automatically using the quarters theory. Many traders do not know how to correctly identify and draw support and resistance levels, and on other drawback about drawing resistance and support levels is that when you do it manually it takes up a lot of time, time which can be used for analysing the market and executing trades. The white lines of the indicator are the major levels, the yellow lines are the half levels and the green lines are the quarter levels; so the white lines are divided by half to get the yellow lines and the yellow lines are divided in half to get the green quarter lines.

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Trading ideas with the Quarters Theory Indicator For MT4


The financial market prices always move in swings. One time the prices are going down and the next time they are going up. If you look at your trading chart, you will realize it is full of market swings right from the smallest timeframe to the largest timeframe.

Even in long term market trends, if you look closely, you shall realize that there are several ups and downs which occur in a series throughout the trend.

But how do you detect when the ups change to down or downs change to ups? How can you identify the market swings?

One of the most commonly used methods is plotting support and resistance levels.

Resistance levels are levels where the marker prices while moving upwards hit and tend to bounce back downwards. In most cases, a bullish trend doesn’t just move continuously. The market prices will hit the resistance level once or twice and bounce back before going ahead to break through it and move to test the next resistance level.

On the other hand, support levels are levels where the marker prices while moving downwards hit and tend to bounce back upwards. In most cases, a bearish trend doesn’t just move continuously. The market prices will hit the support level once or twice and bounce back before going ahead to break through it and move to test the next support level.

The Quarters Theory Indicator For MT4 helps by plotting the support and resistance levels for you.

The indicator plots white support and resistance and then subdivide the gap between them into four using a yellow line and two green lines on each of the halves on either side of the yellow line. The lines plotted within the gap between the support and resistance lines help in placing stop levels (take profit and stop-loss levels.

A white line is considered a support level when it is below the current market price and a resistance level when it is above the current market price.




Quarters Theory Indicator For MT4 - Buy Entries


To place a BUY order using the Quarters Theory Indicator For MT4, you should look for a bullish breakout on a resistance level or a bounce back after the market price hits or approaches a support level.

In case of either of the occurrences, you should set your take profit level at the green line above the yellow line (three quarter between the gaps of the two white levels). You should also go ahead and place a trailing stop loss level using the first green line just above the white line that has just been crossed or on which a bounce-back has occurred.

To avoid being caught off guard, however, it is important to use a trend indicator like the Simple Moving average (SMA) to confirm if there is a bullish trend or not. This helps you avoid situations where a breakout or a bounce-back occurs but then it is followed by an opposite movement that persists over time forming a trend.




Quarters Theory Indicator For MT4 - Sell Entries


To place a SELL order using the Quarters Theory Indicator For MT4, you should look for a bearish breakout on a support level or a bounce back after the market price hits or approaches a resistance level.

In case of either of the occurrences, you should set your take profit level at the green line below the yellow line (three quarter between the gaps of the two white levels). You should also go ahead and place a trailing stop loss level using the first green line just below the white line that has just been crossed or on which a bounce-back has occurred.

To avoid being caught off guard, however, it is important to use a trend indicator like the Simple Moving average (SMA) to confirm if there is a bearish trend or not. This helps you avoid situations where a breakout or a bounce-back occurs but then it is followed by an opposite movement that persists over time forming a trend.




Quarters Theory Indicator For MT4 - Conclusion


By using the Quarters Theory Indicator For MT4, you can take advantage of the market swings.

If a breakout occurs through a resistance level, 80% chances are that the price will move up three-quarters of the gap between the crosses resistance level and the next resistance level before retracing. And if it retraces back down, it will move down covering three-quarters of the gap before either retracing or going on for a bearish breakout.

On the other hand, if a breakout occurs through a support level, 80% chances are that the price will move down three-quarters of the gap between the crosses support level and the next support level before retracing. And if it retraces back up, it will move up covering three-quarters of the gap before either retracing or going on for a bullish breakout.

 

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