There are four different types of divergences that can occur in Forex. “Regular” divergences are considered to be the most important because they often give better quality signals when compared to “hidden” divergences. A regular pattern often signals a switch in what is currently being shown, while a hidden pattern signals that the same trend displayed will...
Quarters Theory focuses on the 1000 PIP Ranges between the Major Whole Numbers in currency exchange rates and divides these ranges into four equal parts, called Large Quarters. Each 1000 PIP Range contains four Large Quarters and each Large Quarter has exactly 250 PIPs (1000 PIP Range/4 = 250 PIPs).
The Quarters Theory proposes that every significant price move in currency exchange rates takes place from one Large Quarter Point to another, in gradual increments of 250 PIPs, the range between two Large Quarter Points. The Large Quarter Points serve as constant support/resistance levels, as well as familiar, invariable price targets.
There is a belief that price movement in financial markets is random and chaotic. Quarter theory suggest a clear pattern in price movement, challenging the notion that price movement is random. Quarter theory organizes the daily fluctuations of currency exchange in a systematic orderly manner.