Quarter Theory

The number price points

In the quarters theory, challenges the notion that moves in the Forex are random. With its clearly defined constant price ranges of 250 pips and orderly price moves from one LARGE QUARTER POINT to the next, the quarter theory organizes the daily fluctuations of currency exchange rates in a systematic arrangement.

The quarter theory takes a 1000 pips range and break it down to four large quarters of 250 pips each.
The major round numbers, also known as major large quarter points are drawn in RED. The solid black lines are called Large Quarter points.

The quarter theory proposes that every significant price move in currency exchange takes places from one Large Quarter point to another, in gradual increments of 250 pips.

The range between the two Large Quarter in black or round number in red.
Within each Large Quarter point of 250 pips, there are important price zone.
They are identified as the Half point and the Hesitation zone.

The half point is a price 1/2 way between two Large Quarter price points and is positioned exactly 125 pips in between the two large quarter points. The half points are displayed as a black dotted line.

The hesitation zone price points are the range of 75 pips above or below a Large Quarter point.

The Small Quarters

Within the Quarter Theory also divides a 100 pips ranges between two whole numbers in into four equal parts called small quarters.

Each 100 pips ranges contains four small quarters and each small quarters has exactly 25 pips (100 pips range / 4 = 25 pips)

Small Quarter points are the numbers that mark the beginning and the end of each small quarter (ex: 1.13000, 1.13025, 1.13050, 1.13075, 1.13100)

The Hesitation Zone

Formed by the first three Small Quarters of 25 pips of each large quarter. The positioning of the Hesitation Zone depends of the price movement.

If price move above a Large Quarter Point, the Hesitation Zone will be 75 pips or three small quarters above a large quarter point.

If price move below a Large Quarter Point, the Hesitation Zone will be 75 pips or three small quarters below a large quarter point.

The main trade of the Quarters Theory method is Large Quarter Trade. The objective of the Large Quarter Trade is the successful completion of a large Quarter.

The Quarter Theorys considers a Large Quarter to be successfully completed as long there is a number registered as a high, low , open, or close price within one Small Quarter of 25 pips above or below a large Quarter Point.

To participate in these trades look for the usual setups at the right time of the day. The Large Quarter numbers are very powerful.

3 Day Rule of the Quarter Theory

Requires that a large quarter is completed in a time period lasting no longer that 3 trading days. If the pair fails to break a LQP within a 3 day period , expect a reversal.

A failure to complete a LQP in three trading days should be considered a sign of price weakness and potential exhaustion that could lead to the unsuccessful completion of the Large Quarter, resulting in a reversal back toward the preceding Large Quarter.

The Half Point Reversal Trade

Is a quarter theory trade that capitalizes on the reversal price moves that takes price from the half point of a larger quarter back to the preceding Large quarter point.

Hesitation Trade zone

Is a quarter theory trade that takes advantages of the price moves targeting the end of the hesitation zone 75 pips above or below a large quarter point.