Value Area 80% Rule

Discussion in 'Trading' started by Lonely trader, Jun 3, 2007.

  1. Hi New here, but been in the game a few years, trading stocks, but looking to trade the futures.

    Somthing the Floor looks at?

    The Value Area: Is the range of prices where 70% of yesterday's volume took place?

    For example, if the market opens (or gets outside of the value area) and then gets back into the value area for (2) consecutive 30' bars the 80% Rule states it has a high probability (depending on market conditions as much as 80%) of completely filing the value area. The rule can be misleading, in that you DON'T have to see both 30' bars close within the value area. The first bar can enter and close within the value area and when the second bar opens within the value area we have met the 80% Rule
    The questions is, Do anyone know, where I could get the Value Area numbers for free?..Further does anyone use it? I understand the Floor looks at these numbers?

    Look forward to your posts.

  2. Agyar


    The value area numbers you are referring to are related to Market Profile. They are used by a few on the floor, but not many. Most folks on the floor are looking to scalp a few ticks based on the edge they have being in the pit (yes this is an actual edge, not the edges all these home traders claim to have). Plenty of folks use Market Profile that are not on the floor.

    If you test the 80% rule you are referring to, you will find it isn't anywhere close to 80%. And it isn't even necessarily tradeable as a setup.

    Here is some free educational Market Profile material from the CBOT site (make up a pot of coffee, you'll need it).,3181,1184,00.html

    There was a guy that ran a site that used to post the Market Profile numbers daily, but my link seems to be dead. Don't know what happened to it. Here is a post that looks like someone is posting them every day.
  3. Agyar


  4. Hi Agyar

    I appreciate you post. CBOT link was a great I learned something from it. and the link to VA on mypivots are great, you usually got to pay to get these numbers.

    You are a 'Top Man," thanks for the links

  5. You should be able to look at an intra-day bar chart and determine a day's value area with a little experience.
  6. ammo


    lonely, if you want to use market profile go back to that cbot site and find the cisco version its very informative,that trade you described has nothing to do with trading and should be avoided until you know more about those value areas
  7. Thanks for your help guy's, but there is so much to it. Does anyone here make money using it

    Seems a lot of head work, further will it continue to work, if everyone going to look at the same areas of Value:confused:
  8. K-Rock


  9. Thanks rock

    I will read through it over the coming days.