Quarterly Theory Cycles

The Quarterly Theory Cycles tool provides a multi-layer time cycle visualization that plots up to eight nested Quarterly Theory cycles simultaneously to identify fractal market phases. This indicator helps traders visualize where current price action sits within the overarching time structure, from 5-minute Nano sessions up to the 4-year Quadrennial cycle.

Usage

The Usage section describes how the script can be used to identify repeating time-based sequences. The indicator divides each selected cycle into four distinct quarters—Accumulation (Q1), Manipulation (Q2), Distribution (Q3), and Reversal/Continuation (Q4)—represented by color-coded boxes.

• Fractal Analysis: Users can monitor multiple time horizons at once. For example, when a Weekly Q3 (Distribution) aligns with a Daily Q3 (NY AM session), it indicates a high-probability distribution window across different fractal layers.
• Automatic Layer Selection: By default, the tool automatically selects relevant cycle layers based on your current chart timeframe. A 5-minute chart might show 90-minute, daily, and weekly cycles, while a daily chart focuses on yearly and quadrennial cycles.
• On-Chart vs. Sub-Pane: The indicator can display cycles as a stacked roadmap in a separate pane or as auto-scaling boxes directly on the price chart. The on-chart mode dynamically adjusts to visible price action to avoid overlapping with candles.
• Session Identification: Specific cycles feature contextual labels. The Daily cycle identifies "Asia," "London," "NY AM," and "NY PM" sessions, while the Weekly cycle labels Monday through Friday to provide immediate orientation.

Details

The script implements the "A-M-D-X" (Accumulation, Manipulation, Distribution, Reversal/Continuation) sequence across eight nested layers:

1. Quadrennial: A 4-year cycle where each quarter represents one calendar year.
2. Yearly: Financial quarters (Q1: Jan-Mar, Q2: Apr-Jun, etc.). The April open serves as the "True Open."
3. Monthly: Divided into four weekly quarters starting from the first Sunday session of the month.
4. Weekly: Divided into daily quarters (Mon-Thu), with Friday/Sunday acting as Q0 (reset/joker).
5. Daily: Four 6-hour sessions (Asia, London, NY AM, NY PM).
6. 90-Minute: Each daily session is further subdivided into four 90-minute cycles.
7. Micro: 22.5-minute quarters within the 90-minute cycle.
8. Nano: The finest resolution, consisting of ~5.6-minute quarters (relevant for sub-minute timeframes).

The script includes exchange-specific logic to anchor cycles to the correct trading day start (e.g., 17:00 ET for CME, 18:00 ET for FX, and 22:00 UTC for Crypto).

Settings

Cycles

• Manual selection: Toggles between automatic cycle selection based on timeframe and manual layer toggles.
• Layers to show: Determines the number of cycles displayed when in automatic mode (1–8).
• Cycle Toggles: Individual checkboxes for Nano, Micro, 90m, Daily, Weekly, Monthly, Yearly, and Quadrennial layers.

On-Chart

• Show on-chart cycles: Enables the price-overlay version of the indicator.
• Only: Hides the sub-pane cycles to display only the on-chart overlay.
• Show previous period on Q1: Keeps the previous completed cycle visible during the first quarter of a new cycle for structural reference.

Colors

• Q1-Q4 / Q0 Colors: Customizable colors for each cycle phase.
• Divider Style/Width: Controls the appearance of vertical lines separating the quarters.

FAQ

How do I interpret the "True Open"? In Quarterly Theory, the open of the second quarter (Q2) is considered the "True Open" for that cycle, serving as a critical reference level for premium and discount analysis.

Why do some cycles show Q0? Q0 represents "joker" periods, such as the fifth week of a month or Fridays in a weekly cycle, which do not fit into the standard four-quarter A-M-D-X sequence.

How do I access the Quarterly Theory Cycles? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.