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Monday, September 17, 2007

Secret Trading Tip #3


From the Desk of S&P Trader, Larry Levin:

Secret Trading Tip #3 How to pick intraday market direction with an amazing 80% accuracy

One simple technique I've used to pick intraday market direction with an amazing 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 knowing the trade has an 80% expectancy of hitting the target. What could be easier?

My mentorship programs spell it out in complete detail. Everything you need to capitalize on one of my favorite secret trades. By the way people are usually amazed at how this one works!

Here's a sneak peak:

The Value Area: 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 Market Has an 80% Chance of Filling the Value Area

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 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.

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

First we'll talk about the basics of the value area, and what to watch for, and then we'll discuss the impressive 80% rule and how to trade that technique. The market has some predictable reactions when it's in and around the value area.

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