Cryptocurrency Q&A
What is the 80% rule in day trading?
What is the 80% rule in day trading?
SumoMight
Thu Oct 03 2024
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6 answers
1057
Can you elaborate on the concept of the 80% rule in day trading? Is it a widely accepted strategy among traders, and if so, how does it work? What does it entail in terms of risk management and profit-taking? How does one go about implementing this rule in their day trading strategy? Are there any specific conditions or markets where this rule is particularly effective or ineffective?
6 answers
Margherita
Sat Oct 05 2024
The 80% Rule is a fundamental concept in market Profile analysis, which is widely utilized in the financial markets, including cryptocurrency trading. This rule serves as a predictive strategy, providing traders with valuable insights into market behavior.
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ethan_carter_engineer
Sat Oct 05 2024
The essence of the 80% Rule lies in the identification of the value area, a crucial aspect of Market Profile analysis. The value area represents the range within which the majority of trading activity occurs during a specific time period.
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Valentino
Sat Oct 05 2024
When the market opens or moves outside of the established value area, it signals a potential shift in momentum. However, if the market subsequently moves back into the value area within two consecutive 30-minute bars, the 80% Rule comes into play.
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Martino
Sat Oct 05 2024
According to this rule, the likelihood of the market completely filling the value area increases significantly under these conditions. This means that traders can expect the market to retrace and potentially fill the gaps within the value area, presenting opportunities for profitable trades.
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DaeguDiva
Fri Oct 04 2024
The 80% Rule is a valuable tool for traders seeking to capitalize on market movements and make informed decisions. By understanding and applying this concept, traders can improve their accuracy in predicting market behavior and enhance their overall trading performance.
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