Sunday, February 7, 2016

Using 25% Value Area ("River of Gold") as Support and Resistance

Using 25% of Value as Support and Resistance

I have been using the 25% value area for several months now and have found an edge many times when trading a reversal inflection at this level.  Friday's sell off in the E-Mini S&P 500 started with a 25% reversal inflection at the previous session's 25% VAH at 8:15 am Chicago Time, CST.  Then, a second reversal inflection at the current developing 25% VAH occurred at 8:42 am CST that held ALL DAY as price continued moving lower and lower all the way down to the Feb. 3 low as seen on the 30 minute chart.  So using the River of Gold as a support or resistance level can provide you an edge in trading when the market is moving.

JATSTestBH Template -- Volume
JATSDirectionGuideBH Template -- Filter:  Short Direction
JATSDirectionGuideBH Template -- Chart Template using Index Futures Filter