1 / 18

Trading Value

Trading Value. “Do I hear 60…65…70…75…”. Discovery (Auction) Zone. Buyers In Control, Sellers Step Away. Price. Value Area High. Sellers In Control. Point of Control. Fairest Price to Do Business. Buyers In Control. Value Area Low. Sellers In Control, Buyers Step Away. Time.

jshepherd
Download Presentation

Trading Value

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Trading Value “Do I hear 60…65…70…75…” Discovery (Auction) Zone Buyers In Control, Sellers Step Away Price Value Area High Sellers In Control Point of Control Fairest Price to Do Business Buyers In Control Value Area Low Sellers In Control,Buyers Step Away Time Discovery (Auction) Zone “Do I hear 50…45…40…35…”

  2. RISK DISCLAIMER Day trading, short term trading, options trading, and futures trading are extremely risky undertakings. They generally are not appropriate for someone with limited capital, little or no trading experience, and/ or a low tolerance for risk. Never execute a trade unless you can afford to and are prepared to lose your entire investment. All trading operations involve serious risks, and you can lose your entire investment. No trades are recommendations or advice and we cannot be sued for losses of capital. All trades are for educational purposes only. Contact your broker or RAI for execution, margin, and other capital requirements. Everyone watching presentation adheres to ALL disclaimers on www.optionhacker.com and www.keeneonthemarket.com

  3. Value Areas – The Gravity Theory Imagine price, not as a tick on a candle chart, but as a ball affected by gravity….

  4. Value Areas – The Gravity Theory The Gravitational Fields… Price Time

  5. Value Areas – The Gravity Theory The Gravitational Fields… Value Area and Targets… Point Of Control Value Area High Value Area Low Short Targets Long Targets

  6. Value Areas – The Gravity Theory Inside value, price will move towards the POC…. Point Of Control Value Area High Value Area Low

  7. Value Areas – The Gravity Theory Outside value, price will move away from the VA…. Point Of Control Value Area High Value Area Low

  8. Value Areas – The Gravity Theory Outside value, near the furthest targets, price will retreat to value…. Point Of Control Value Area High Value Area Low

  9. Value Areas – The Gravity Theory At the VAL or VAH, price could go either direction…. Point Of Control Value Area High Value Area Low

  10. Value Areas – The Gravity Theory When sellers are in control outside of Value Area…. Point Of Control Value Area High Value Area Low

  11. Value Areas – The Gravity Theory When buyers are in control outside of value area…. Point Of Control Value Area High Value Area Low

  12. Value Areas – The Gravity Theory When sellers are in control inside of Value Area…. Point Of Control Value Area High Value Area Low

  13. Value Areas – The Gravity Theory When buyers are in control inside of value area…. Point Of Control Value Area High Value Area Low

  14. Value Areas – The Gravity Theory When price opens below value we expect sellers to remain in control and short at VAL. When price opens above value we expect buyers to remain in control and buy at VAH. The targets provided by the MarketWebs act as mountains, price will likely find pause there. We close our positions at further targets where the mountains get highest and provide most pause and possible reversal. When price opens inside of value we expect the mountains of value extremes to remain in control and buy/short towards the POC, closing our positions at the POC as price may get stuck. These concepts work for the value area on all time frames. If I’m looking at the yearly value area, I have to look at longer dates. If I’m looking at the monthly value area, I have to look at closer dates. If I’m looking at the weekly value area, I have to look at nearer dates. If I’m looking at the daily value area, I have to look at the action today.

  15. Value Areas – The plays Some things to note: The peaks and valleys illustrated in the gravity theory get amplified over time. A new timeframe (with a new value area) is still young, buyers and sellers have not established their influence on the gravity yet. In the middle of the time frame the gravity tilt is established and can change but it takes more energy. During this time, we look at the profile for guidance, is the bell curve complete? At the end of the time frame we look again at the profile, where is value likely to be in the next time frame? Young Old

  16. Value Areas – The Plays Set-Ups: When starting a new time frame above value:The more time is spent above value, the more solid support the value area will be. I want to get long as close to the top of value as possible. When starting a new time frame inside value:The more time is spent inside value, the more solid support/resistance the extremes of the value area will be.I want to get short as close to the top of value as possible, and long as close to the bottom of value as possible – always targeting the POC. When starting a new time frame below value:The more time is spent below value, the more solid resistance the value area will be.I want to get short as close to the bottom of value as possible.

  17. Value Areas – The Plays Set-Ups: The Break When starting a new time frame inside value:The more time is spent inside value, the more solid support/resistance the extremes of the value area will be. If we break above value and spend some time outside, I want to go long as close to the top of value as possible (there should be ONE return) and use the outside targets. If we break below value and spend some time outside, I want to go short as close to the bottom of value as possible (there should be ONE return) and use outside targets.

  18. Value Areas – The Plays Set-Ups: The 80% Rule (Works 80% of the time) When starting a new time frame above value:The more time is spent above value, the more solid support the value area will be. If we then break into the value area and spend some time inside, I want to short as close to thetop of value as possible (there should be ONE return) and target the bottom of the value area. Once this play has played out, I can reverse position (go long) at the bottom of value area and target the POC. When starting a new time frame below value:The more time is spent below value, the more solid resistance the value area will be.If we then break into the value area and spend some time inside, I want to go long as close to the bottom of value as possible (there should be ONE return) and target the top of the value area. Once this play has played out, I can reverse position (go short) at the top of value area and target the POC.

More Related