I don't know exact calculation I just have this tool in my ensign software but you can use previous day range, and gap just been filled.
Hi Balda, again a nice gap. Previous day range in NQ about 30 points, 70% = about 20 points. Gap down today about 10 points, so it is within the range. That means 80% probability that gap will be filled today???? Is there a mistake in the calculation?
no it was below the 70% of daily volume range. go to: www.daytradersusa.com then on the left side click green button "LICOS DAiLY ALERT" if you go directly to licos web site it is not accusable because it is members area, but if you go through another web site it is free. they use 80% of daily volume range. I used to use them and now my software does it for me. this is the way they use it: Value area is support/resistance but if two 30min bars trade inside value area there is 80% chance that it will be filled. you'll need some time to get used to the strategy.