This indicator implements the "Quarters Theory" - a technical analysis concept that divides price movement into four quarters around a central base level. It's designed to work with multiple asset types (Forex, stocks, commodities, etc.) and provides visual quarter levels on the chart.
Quarters Theory Concept:
Base Level: Central reference price
Quarter 1: Price range from Base to Base + Quarter Range
Quarter 2: Price range from Base + Quarter Range to Base + 2*Quarter Range
Quarter 3: Price range from Base - Quarter Range to Base
Quarter 4: Price range from Base - 2*Quarter Range to Base - Quarter Rang
1. Flexible Base Level Calculation:
Current Daily Close: Latest closing price
Previous Day Close: Yesterday's closing price
Previous Week Close: Last week's closing price
Previous Month Close: Last month's closing price
Weekly/Monthly Open: Start of week/month price
Custom Level: User-defined price level
2. Multiple Quarter Size Units:
Pips: Forex-specific measurement
Points: Smallest price increment
Percentage: Percentage of base level
Absolute: Fixed price value
3. Multi-Asset Support:
Automatically detects Forex vs. other instruments
Adjusts pip calculations for different symbol formats
Handles unavailable timeframes gracefully
Trading Applications:
Support/Resistance:
Quarter boundaries act as dynamic support/resistance
Middle lines as potential reversal points
Trend Analysis:
Price in Quarter 1/2 suggests bullish bias
Price in Quarter 3/4 suggests bearish bias
Quarter transitions indicate trend changes
Range Trading:
Trade bounces between quarter boundaries
Look for reactions at quarter midpoints