From TradingView · · 1m
Value area 80% rule: 5 live Nasdaq setups
3 of 5 Nasdaq setups worked using value area 80% rule.
In brief
3 of 5 Nasdaq setups worked using value area 80% rule. Three of five Nasdaq futures setups using the value area 80% rule worked this month. Originally reported by TradingView.
Value area 80% rule
The 80% rule uses yesterday's value area to predict Nasdaq futures moves.
How it works
Take yesterday's value area. Today opens outside it. Price then trades back inside for two 30-minute periods.
Data from 21 sessions
16 of 21 sessions opened outside the prior value area. Only 5 gave the trigger.
3 worked this month
3 of 5 setups reached the other side of yesterday's value area in the same session.
Example 1: Friday 16 Oct
Friday opened above Thursday's value area. Price closed inside two periods and reached Thursday's value low.
Example 2: Tuesday 20 Oct
Tuesday opened below Monday's value area. Price closed inside two periods but never reached Monday's value high.
In short
Three of five Nasdaq futures setups using the value area 80% rule worked this month.
