If, after trading outside the Value Area, we then trade backinto the Value Area (VA) and the market closes inside the VA in oneof the 30 minute brackets then there is an 80% chance that themarket will trade back to the other side of the VA.
Using
1. Wait for the trade to close inside the VA.
2. Try and get best possible trade entry. If possible, enterfrom VA level that was crossed in order to close inside VA.
3. Target most of the position at the other side of the VA.
Notes
One trader noted to me that in testing the 80% rule usingTradeStation the probability is actually 62% and not 80%. The tradesupposedly gets its name from the probability of the outcome of thetrade. i.e. There is an 80% probability that the market will tradeto the other side of the VA.
Look at your risk/reward when taking this trade. If the VA isonly 2 points wide and you use a 3 point stop then this trade isprobably not worth taking when the VA is this small.
The Pareto principle (also known as the 80/20 rule, the law of the vital few and the principle of factor sparsity) states that for many outcomes, roughly 80% of consequences come from 20% of causes (the "vital few").
https://en.wikipedia.org › wiki › Pareto_principle
? The 80-20 rule, also known as the Pareto Principle, is a familiar saying that asserts that 80% of outcomes (or outputs) result from 20% of all causes (or inputs) for any given event.
When it comes to insuring your home, the 80% rule is an important guideline to keep in mind. This rule suggests you should insure your home for at least 80% of its total replacement cost to avoid penalties for being underinsured.
The 80-20 rule, also known as the Pareto Principle, states that 80% of all outcomes result from 20% of all causes. In business, this means seeking the most productive inputs that will generate the highest outcomes/returns.
The 80/20 rule is a simple concept that can be applied to many situations. It states that 80% of the results come from 20% of the effort. This means that you should focus on the 20% of your efforts that will lead to the greatest reward, or yield the highest value for your time and energy.
The Rule of 80 is a calculation often used in pension plans to determine when an employee is eligible for full retirement benefits. It states that an employee can retire once their age plus years of service equals 80.
While the rule is broadly interpreted as getting 80% of your results from 20% of your effort, in relationships, the 80/20 rule can be applied in several ways. For instance, you can expect to get 80% of your needs met by your partner in your relationship, but the other 20% is up to you.
That is where the the 80% rule come in. This principle, grounded in the philosophy of efficiency and progress, emphasizes that achieving perfection isn't always necessary or even attainable. Instead, aiming for 80% completion can lead to faster results, increased innovation, and a culture of agility.
80% of your needs are being met by your partner, and you're figuring out the other 20% on your own. When the 80/20 rule is applied to infidelity, the theory is that when someone cheats, they're attracted to the 20% in someone else that they were missing from their partner.
Productivity. You can use the 80/20 rule to prioritize the tasks that you need to get done during the day. The idea is that out of your entire task list, completing 20% of those tasks will result in 80% of the impact you can create for that day.
The 80 20 rule is one of the most helpful concepts for life and time management. Also known as the Pareto Principle, this rule suggests that 20 percent of your activities will account for 80 percent of your results. This being the case, you should change the way you set goals forever.
What is the 80% Rule? The 80% rule was created to help companies determine if they have been unwittingly discriminatory in their hiring process. The rule states that companies should be hiring protected groups at a rate that is at least 80% of that of white men.
The 80-20 rule maintains that 80% of outcomes comes from 20% of causes. The 80-20 rule prioritizes the 20% of factors that will produce the best results. A principle of the 80-20 rule is to identify an entity's best assets and use them efficiently to create maximum value.
Age 65 with five or more years of service credit, or. At least age 62, meet the Rule of 80 (combined age and years of service credit equal at least 80), and have at least five years of service credit.
The rule states that employers should be hiring protected groups (i.e. those who are different from white men in terms of ethnic group, race, or sex) at a rate that is at least 80% that of a non-protected group (such as white males).
There are various formulas people rely on to estimate retirement expenses, all of which are rough guesses at best. One well-known method is the 80% rule. This rule of thumb suggests that you'll have to ensure you have 80% of your pre-retirement income per year in retirement.
The 80% rule means that an insurer will only fully cover the cost of damage to a house if the owner has purchased insurance coverage equal to at least 80% of the house's total replacement value.
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