The following chart shows the perfect example of “The 80% Rule” trade set up. When the market opens (or gets) above or below the Value Area, and then gets in the Value Area for two consecutive half hour periods. The market then has an 80% chance of filling the Value Area. The Value Area (and the 80% rule) can be an excellent tool for judging market direction. Many traders familiar with the Value Area and the techniques that go along with it use it to help them decide what trades to do each day. You will find that using the Value Area each day will be valuable in your trading.
