What is the Quarters Theory Indicator on MT4?
The Quarters Theory Indicator for MT4 is one of the leading indicators used by traders for technical analysis. This indicator is carefully designed to plot support and resistance levels.
The Quarters Theory indicator for MT4 is a good tool for newbies and experienced traders because of its accuracy in plotting support and resistance levels.
In today’s trading space, many traders do not know how to correctly draw or identify support and resistance levels. And when they do it manually, it can take quite some time, which could have been dedicated to analyzing the market and executing trades.
Quarters Theory indicator: Instroduction
There are a lot of indicators available on MT4 for plotting support and resistance levels. That said, very few of them are as accurate as the Quarters Theory indicator. This custom technical indicator was developed to assist traders in identifying support and resistance levels according to Quarters Theory.
The indicator can plot horizontal lines with a predetermined distance correctly. A close look at the indicator reveals lines neatly spaced out in quarters, these are four large quarters neatly divided by black lines. The tool also features smaller quarters within each large quarter. This is divided by a yellow line, followed by two green lines.
Quarters Theory Indicator: How it works
Like most technical indicators for MT4, the Quarters Theory indicator uses a set of complex algorithms. These algorithms are essential to the smooth operation of the indicator, mainly because they help identify the starting point of the Quarters Theory lines.
Each line is spaced out by a specific whole number in pips. In terms of pip value, this is preset to 100 pips. This makes up the distance between each black line forming the large quarters.
Similarly, the space existing between each large quarter is subsequently divided into four smaller quarters. These quarters have a 25 pip value distance. For clarification purposes, this space sits between the yellow and green lines.
How to correctly use the Quarters Theory Indicator on MT4
Using the Quarters Theory indicator on MT4 will make your job pretty easy as you no longer have to spend hours trying to plot support and resistance levels correctly.
Like any other MT4 indicator, the Quarters Theory indicator consists of several variables that can be tweaked within its settings. Here, take a look at some of them:
- Distance between majors: This variable refers to the number of pips between each black line. While it comes with a default setting, traders can tweak it to suit their trading style.
- Start from bar: This variable allows traders to tweak the starting point of the Quarters Theory lines.
- How many bars: This variable refers to the number of bars from which the indicator lines would be based on.
- Disable quarters: This variable allows traders to disable smaller quarters, effectively changing them to halves.
- Quarters style: Traders use this to tweak the style of the lines plotted by the Quarters Theory indicator.
The Quarters Theory indicator delivers superb results when deployed with other fantastic indicators. The indicator can be deployed with double tops and bottom. Similarly, it can be used for gauging price rejection levels, especially on a continuation price pattern following a pullback.
It is also an excellent tool for plotting basic support and resistance levels, especially if price action has previously shown reversals at these levels.
Quarters Theory indicator: The buy trade setup
The Quarters Theory indicator is a remarkable indicator for spotting buy trade opportunities.
Traders can enter a buy trade once price action shows signs of a bullish price rejection on resistance levels, as demonstrated by the Quarters Theory. Feel free to set your stop loss just below the setup.
As per exit, ensure you set your TP on the next major Quarters Theory line.
Quarters Theory indicator: The Sell trade setup
Like buy opportunities, it is also used to spot sell trade opportunities. Here is how to identify bearish trade opportunities using this indicator.
Traders using this indicator can enter a sell trade once price action shows signs of a bearish price rejection on support levels plotted by the indicator. You can set your stop loss just above the setup.
To exit your position, set your TP on the next major line as plotted by the Quarters Theory.
Conclusion
The Quarters Theory indicator is a solid indicator gaining attention among traders because of its success. By deploying the Quarters Theory indicator for MT4 in your trading sessions, you can take advantage of market swings, whether bullish or bearish. That said, keep in mind that the Quarters Theory Indicator, like every other indicator on the MT4 platform, is merely a support for the strategy.
However the Quarters Theory Indicator isn’t the holy grail. To this end, traders deploying this indicator still have to use it with caution. Ensure you get some practice time with this indicator before deploying it fully for your trading sessions. For better accuracy, it's best to use this indicator with other sophisticated indicators available on the MT4 platform.
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