This is a continuation from my last post on the subject : http://www.vtrender.com/2011/10/of-and-mp.html
This morning Market profile helped us set up an easy 80 % rule trade.
This is the definition :
” If a market opens above (below) value area and crosses value high (low) , then in 80 % cases it will go on to hit the Value area low for that day.
Have a look :
The value area High is shown as VAH in the chart and the value area low is shown as VAL.
Just to confirm we had a sell signal in the OrderFlow charts,
At the moment ( 1.00 pm IST) the value area low is also the low of the day.
The pull back from the day high has measured 81 points in keeping with the post we made on the weekend.