In commodity future online trading the Value Area is one of the best commodity trading systems used by commodity traders, even in commodity forex online trading
In commodity future online trading the Value Area (range of prices where 70% of yesterday’s volume took place) is one of the best commodity trading systems used by commodity traders, they also use it in commodity forex online trading like the Euro/Dollar.
Now remember while you are commodity future online trading that if, for example, the value area when emini trading the E-mini S&P 500 is 1100-1115, then 70% of the previous day’s volume took place between those prices.
Let's talk about the 80% rule that many traders use when commodity future online trading.
The 80% Rule in commodity future online trading:The 80% rule, when commodity future online trading, indicates that when the Market opens above or below the previous day's value area and then gets into it and stays in yesterday's value area for two consecutive half-hour periods (keep on reading and I will clear this out in a moment) We have a probability of 80% that the Market is going to fill yesterday's value area (moving to the opposite side of the value area).
So one of the best commodity trading systems for commodity future online trading is to try to ride the market as it fills the value area.
Two Consecutive half-hour periods:
When looking at a 30-minute candlestick chart in your commodities charts, look for the following...
If the market is in yesterday's value area for one 30-minute candlestick (it Must close inside the value area) and it is still in the value area when the next candle opens, the Market has then been in the value area for two consecutive half-hour periods.
This, my friend, is the time to watch for the 80% rule (see examples below).
Ok, with that already clear (I hope), we have two scenarios to take into account, in commodity future online trading, when applying the 80% rule:
Now, Let's check in commodities charts (click to enlarge) some trades we would do using this rule in commodity future online trading. These commodities charts are the cash session of Crude Oil (CL) in 30-minute candlestick charts.
Well my dear friend this might sound like a simple commodity trading system for all the commodity trading systems out there for commodity future online trading, BUT, simplicity is king. We want to make money, not trade sophisticated systems, don't you think so?...
Click when you are finished with The 80% rule in commodity future online trading and go back to Market Profile as a commodity trading system
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Praveen from Miami, Florida.
First I must congratulate you on a very successful and useful site. It is practical and really helps to trade with confidence. Excellent work. Trust me when I say this...
I have gone through thousands of sites before I came across your work and indeed it is commendable. I have one question for you. After drawing support and resistance lines on the 30 and 5 minute chart, do you then focus on a 2 minute chart and take your trades based on candlestick patterns?
Robby from Indonesia.
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Jose, Las Palmas, Gran Canaria, España.
Hello, i only want to say you thank you for all this free information, for me that I'm a begginer all this information is pure gold.
Thank you very much.