toodegrees

Daye Quarterly Theory by toodegrees

toodegrees Updated   
> Introduction and Acknowledgements
The Daye Quarterly Theory° tool encompasses the cyclical Time aspect of the markets as studied and developed by Daye (traderdaye on Twitter).

I am not the creator of this Theory, and I do not hold the answers to all the questions you may have; I suggest you to study it from Daye's tweets and material.
I collaborated directly with Daye to bring a comprehensive Time tool to Tradingview.
S/O to @a1tmaniac and @joshuuu for their previous works on this Theory.


> Tool Description
This is purely a graphical aid for traders to be able to quickly determine Daye's Quarterly Cycles, and save Time while on the charts.
The disruptive value of this tool is that it reliably plots forwards in Time, allowing you to strategize and tape read efficiently; as well as calculating all the Cycles, from Micro Sessions, to the Year.



> Quarterly Theory by Daye
The underlying idea is that Time is to be divided in Quarters for correct interpretation of Market Cycles. The specific starting point of a Cycle will depend on the Timeframe at hand.

Daye being one of the most prominent Inner Circle Trader students, these ideas stem from ICT's concepts themselves, and are to be used hand in hand (PD Array Matrix, PO3, Institutional Price Levels, ...).

These Quarters represent:
  • 
A - Accumulation (required for a cycle to occur)
  • 
M - Manipulation
  • 
D - Distribution
  • 
X - Reversal/Continuation

The latter are going to always be in this specific sequence; however the cycle can be transposed to have its beginning in X, trivially followed by A, M, and finally D.
This feature is not automatic and at the subjective discretion of the Analyst.

Note: this theory has been developed on Futures, hence its validity and reliability may change depending on the market Time.
This tool does provide a dynamic and auto-adapting aspect to different market types and Times, however they must be seen as experimental.



> Quarterly Cycles
The Quarterly Cycles currently supported are: Yearly, Monthly, Weekly, Daily, 90 Minute, Micro Sessions.

– Yearly Cycle:
Analogously to financial quarters, the year is divided in four sections of three months each
  • Q1 - January, February, March
  • Q2 - April, May, June (True Open, April Open)
  • Q3 - July, August, September
  • Q4 - October, November, December
Note: this Cycle is the most difficult to optimize as Timeframes become more granular due to the sheer length of its duration. With Time and advancements it will become more accurate. This is the only Cycle for which accuracy is not 100%.

– Monthly Cycle:
Considering that we have four weeks in a month, we start the cycle on the first month’s Monday (regardless of the calendar Day).
  • Q1 - Week 1, first Monday of the month
  • Q2 - Week 2, second Monday of the month (True Open, Daily Candle Open Price)
  • Q3 - Week 3, third Monday of the month
  • Q4 - Week 4, fourth Monday of the month

– Weekly Cycle:
Daye determined that although the trading week is composed by 5 trading days, we should ignore Friday, and the small portion of Sunday’s price action.
  • Q1 - Monday
  • Q2 - Tuesday (True Open, Daily Candle Open Price)
  • Q3 - Wednesday
  • Q4 - Thursday

– Daily Cycle:
The Day can be broken down into 6H quarters. These Times roughly define the sessions of the Trading Day, reinforcing the Theory’s validity.
  • Q1 - 18:00 - 00:00, Asian Session
  • Q2 - 00:00 - 06:00, London Session (True Open, Midnight New York Time)
  • Q3 - 06:00 - 12:00, NY Session
  • Q4 - 12:00 - 18:00, PM Session
Note: these Times are based on Futures Trading in New York Time, these will vary depending on the market type (experimental).

– 90 Minute Cycle:
Merely dividing one of the Daily Cycle’s Quarters we obtain 90 minute quarters. The first one in a Trading Day – 90min Cycles of the Asian Session – follows as an example, in New York Time.
  • Q1 - 18:00 - 19:30
  • Q2 - 19:30 - 21:00 (True Open)
  • Q3 - 21:00 - 22:30
  • Q4 - 22:30 - 00:00

– Micro Cycle:
Lastly, dividing a 90 Minute Cycle yields 22.5 Minute Quarters, known as Micro Sessions. An example breaking down the 90 Minute Cycle from 18:00 to 19:30 follows.
  • Q1 - 18:00 - 18:22:30
  • Q2 - 18:22:30 - 18:45 (True Open)
  • Q3 - 18:45 - 19:07:30
  • Q4 - 19:07:30 - 19:30

Note: trivially, these may not be exact unless the Timeframe is in the seconds, to correctly account for the half minute in each quarter – this said the tool is able to plot these anyways, although slight inaccuracy needs to be taken account depending on the Timeframe.


It is important to remember and be aware that the current chart’s Timeframe will heavily impact the plotted Time Cycles. This tool is in its initial form and it will be improved and adapted as traders start using it on a daily basis.

> Tool Settings
Plot Settings:
  • "Plot Type" will allow you to decide how the Cycles will be displayed. Out of the box the tool will be plotted on a separate pane, at the bottom of the chart; you can decide the orientation of the cycles from longest cycle at the bottom (Bottom Pane), or top (Top Pane). Alternatively you can move the tool to the chart and have the cycles plot on price (Move To -> Existing Pane Above), specifically above price (Top), or below (Bottom). The cycles will auto adjust their position based on the visible price action.
  • "Historical Cycles" will show previous Historical Cycles, up to where available in terms of script memory.
  • "Plot Size" will allow you to vary the height of the Cycle’s boxes
  • "Show Labels" will give you an auto-adapting legend which will help you determine which Cycle is which if you get lost.



The remaining Settings are self explanatory, allowing you to change colors, and choose which Cycles to see.

The source of the code is hidden due to the use of private libraries of mine. Happy to answer any questions in terms of code, where I will not be able to divulge any detail that concerns said libraries. Thank you for understanding!

Major thanks to Daye for his Time and Knowledge, it was a pleasure to collaborate and work together on this tool.

GLGT!
Release Notes:
Fixed different Time start of Daily (and below) Cycles which depended on Daily Candle Open Time. Everything now is based on 18:00 NY Time.
Release Notes:
Fixed Monthly Cycle Inaccuracies
Release Notes:
Added option to change border color

homo faber fortunæ suæ
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Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.

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