We asked All About Trends to share another one of their member articles with our Trader’s Blog readers after the positive response we received from last weeks article.  Here’s the article as outlined by All About Trends in their newsletter dated 4/22/12 In the newsletter for our paying subscribers on Friday we said: “What we [...]

By: Chris Irvin, Veteran Instructor & Trader at The Wizard I have been trading, and mentoring others how to make high probability, low risk stock and option trades for the past decade.  I have worked with over 20,000 students from Sidney Australia to Albany New York.  In that time I have worked with every system, [...]

By Terry Coxon, Casey Research Decades of manipulation by the Federal Reserve (through its creation of paper money) and by Congress (through its taxing and spending) have pushed the US economy into a circumstance that can’t be sustained but from which there is no graceful exit. With few exceptions, all of the noble souls who [...]

By: All About Trends In the stock market there are three things you need to know. Uptrends and how to trade them Downtrends and how to trade them Change In Trends and how to identify them be it down to up or up to down. Given we are sitting at some year highs all going [...]

By way of NFTRH subscriber MetalAugmentor, a reputable and hard working mining stock fundamental research service to which I also subscribe, comes this thread talking about an entity called Turd Ferguson. Turd is an offshoot of Zero Hedge, is apparently a really popular blogger among gold bugs and is cooking up plans to do battle [...]

By way of NFTRH subscriber MetalAugmentor, a reputable and hard working mining stock fundamental research service to which I also subscribe, comes this thread talking about an entity called Turd Ferguson. Turd is an offshoot of Zero Hedge, is apparently a really popular blogger among gold bugs and is cooking up plans to do battle [...]

By Terry Coxon, Casey Research It’s clear to me, even though it may not be clear to you, that unless there is something very unusual about your situation, if you have a traditional IRA, you should pay the tax now and convert it to a Roth IRA. Not just maybe, but definitely. Not just for [...]

By Terry Coxon, Casey Research It’s clear to me, even though it may not be clear to you, that unless there is something very unusual about your situation, if you have a traditional IRA, you should pay the tax now and convert it to a Roth IRA. Not just maybe, but definitely. Not just for [...]

If you follow our blog, then you are definitely familiar with trader Larry Levin, President of Trading Advantage LLC. We have gotten such a great response from some of his past posts that he has agreed to share one more of his favorite trading tips as a special treat to our viewers. Determining the direction [...]

If you follow our blog, then you are definitely familiar with trader Larry Levin, President of Trading Advantage LLC. We have gotten such a great response from some of his past posts that he has agreed to share one more of his favorite trading tips as a special treat to our viewers. Determining the direction [...]

In the not-so-distant past arguing that precious metals prices were setup to fall generally elicited a response which was not real pleasant. In fact, during gold’s infamous bull market rally on several occasions I called for pullbacks which regardless of the accuracy of my call generated hate mail that seemingly never ended. Fast forward to [...]

If you follow our blog, then you are definitely familiar with trader Larry Levin, President of Trading Advantage LLC. We have gotten such a great response from some of his past posts that he has agreed to share one more of his favorite trading tips as a special treat to our viewers. Determining the direction [...]

Today we’ve asked Kenny Mann of Traders day Trading to share his ideas on Elliot Wave Theory and why you should be interested as an investor. Elliott wave theory suggests that stock market prices tend to ebb and flow in recurring wave like patterns that can enable us to identify high probability trading opportunities. The [...]

Exchange-traded funds have been all the rage in recent years – they are easy to buy, easy to sell, and often have lower expense ratios than index mutual funds. But the Casey Research team dug deep into the complex world of ETFs and found that in many cases, their names can be utterly deceptive. Here [...]

Exchange-traded funds have been all the rage in recent years – they are easy to buy, easy to sell, and often have lower expense ratios than index mutual funds. But the Casey Research team dug deep into the complex world of ETFs and found that in many cases, their names can be utterly deceptive. Here [...]

Today we’ve asked Preston James of Trader’s Edge Network to share one of his simple yet effective trading strategies. Preston is a self-professed “stock market linebacker” who is proud of the notion that the only reason he graduated college was due to his football scholarship.  His interest in trading began at a young age, actively [...]

If you follow our blog, then you are definitely familiar with trader Larry Levin, President of Trading Advantage LLC. We have gotten such a great response from some of his past posts that he has agreed to share one more of his favorite trading tips as a special treat to our viewers. Determining the direction [...]

If you follow our blog, then you are definitely familiar with trader Larry Levin, President of Trading Advantage LLC. We have gotten such a great response from some of his past posts that he has agreed to share one more of his favorite trading tips as a special treat to our viewers. Determining the direction of the market can be tricky and just plain confusing at times, but Larry’s expert opinion keeps it simple. If you like this article, Larry’s also agreed to give you free access to his Double Stop trading technique.

Let me introduce you to one simple technique I’ve used to pick intraday market direction with 80% accuracy.

Would you like to know if a particular trade has an 80% probability of working? Would you like to know exactly where to enter that trade, and where to exit? Would you like to trade this technique with a 2 point stop loss or less?

It Doesn’t Matter if the Market is Going Up or Down, This Simple-to-Learn Method Has a Historical Accuracy of 80 Percent!

Using just two key numbers each day, floor traders and other professionals can try to pick the direction, entry price, stop loss and target price of a particular trade. It doesn’t matter if the market is going up or down – this simple to learn method has a historical accuracy of 80%. In fact it’s called the 80% Rule.

Each morning you will know what those two key numbers are. Then, if the set up is correct, simply enter the trade, set your stops, set your target price and sit back with a trade that has an 80% expectancy of hitting the target. What could be easier?

Here are the basics for the 80% Rule:

The Value Area (Secret Tip #12): The range of prices where 70% of yesterday’s volume took place. For instance, if the value area in the S&Ps is 138500-139000, then 70% of the previous day’s volume took place between the prices of 138500-139000.

The 80% Rule: When the market opens 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 excellent tools for judging potential 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.

A couple of key points to remember:

If the market opens above the value area, try to enter a short position as close as possible to the top of the value area.

Conversely, if the market opens below the value area, aim to enter any long position as close as possible to the bottom of the value area.

Once you get used to it, you will find that using the value area each day will be valuable in your trading. (Pun intended!)

The 80% rule is a simple way to ride the market as it potentially fills the value area. However, there is an exception to be alert for. If it the market opens above the value area and then goes above or below it, the 80% rule can still come into play. Watch for it to get back into the value area for those important two consecutive brackets or 30-minute bars.

Click here to see Larry’s Double Stop trading technique.

Best Trades to you,
Larry Levin
Founder & President- Trading Advantage

Disclaimer: Trading in futures and options involves a substantial degree of a risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results.