Quarters Theory example on a 4 hour chart of AudJpy:
What does chart show you?
1) Whole round numbers (black lines)- 100 pips away from next round whole number
2) Quarter numbers (yellow and red)- 25 pips away from next quarter number
These lines make it a lot easier to trade any time frame, why?
1) You can set you enter and exits at these lines on charts
2) These quarter lines give you structure and informs you where price action swings had happen before
3) These quarter lines give you a great place to set your stop losses, on 1:1 or higher risk reward setups.
4) These define your trade, so you can set your risk management via quarter lines on charts
Per attached chart you might know where I think price action will continue to today and/or tomorrow. Yes, you could do a 50 pip stop and 50 pip target on these 1:1 trades but you need a 60% or higher win rate if you only do 1:1 RR trades. But this is not hard to do if you have the knowledge. If you either day trade and/or scalp, I would strongly advise you to you tube and/or google The quarters theory and start using them to define your trades, lot size, entries, exits and targets. This will help you greatly in your trading.
What does chart show you?
1) Whole round numbers (black lines)- 100 pips away from next round whole number
2) Quarter numbers (yellow and red)- 25 pips away from next quarter number
These lines make it a lot easier to trade any time frame, why?
1) You can set you enter and exits at these lines on charts
2) These quarter lines give you structure and informs you where price action swings had happen before
3) These quarter lines give you a great place to set your stop losses, on 1:1 or higher risk reward setups.
4) These define your trade, so you can set your risk management via quarter lines on charts
Per attached chart you might know where I think price action will continue to today and/or tomorrow. Yes, you could do a 50 pip stop and 50 pip target on these 1:1 trades but you need a 60% or higher win rate if you only do 1:1 RR trades. But this is not hard to do if you have the knowledge. If you either day trade and/or scalp, I would strongly advise you to you tube and/or google The quarters theory and start using them to define your trades, lot size, entries, exits and targets. This will help you greatly in your trading.
