Strategy Concept: The 100 Percent Trading Strategy, crafted by Online Trading Solutions, is designed to spot instances where the range of the current bar surpasses 100 percent of the previous bar's length.
Market Implication of the 100 Percent Bar: When the current bar's range exceeds that of the previous bar, it typically signals a potential market halt and a subsequent setback. This model predicts that the market is likely to retract to the 50% level of the bar that triggered the 100% bar, usually within the same bar or within the next 1 to 3 bars.
Strategic Trading Approaches:
Caution Against Immediate Entry: The strategy advises against entering long positions during an upward move and short positions during a downward trend upon identifying a 100 Percent Bar. Entering the market under these conditions might lead to unfavorable pricing. It suggests waiting for the anticipated setback to occur.
Fading the Pattern: Another approach is to 'fade' the 100 Percent Bar pattern, anticipating the market to retrace. This means trading in the opposite direction of the current momentum with the expectation of a market pullback.
This model offers valuable insights for traders, helping them to make informed decisions by identifying potential turning points and market retracements.
The 100 Percent Bars feature in the Online Trading Solutions Market Pulse App allows traders to customize settings to suit their specific trading needs, focusing on significant market movements. This feature is designed to highlight bars that exhibit a range surpassing 100% of the previous bar's length, a key indicator of market volatility and potential price retracements. Here’s a detailed explanation of the customization options available for the 100 Percent Bars settings:
1. Show 100% Bar:
This option lets you toggle the display of the 100 Percent Bars on or off. It’s beneficial for traders who want to focus on significant market movements or prefer to reduce the number of indicators for a cleaner chart view.
2. First Set of Thresholds for Over 100% Bars:
Set up to three different background colors for bars that exceed 100% of the previous bar's range.
These thresholds are typically displayed in reddish colors, visually indicating significant upward movements or bullish trends. Each threshold color can be set to activate at different levels above 100%, allowing for nuanced interpretation.
3. Second Set of Thresholds for Under 100% Bars:
Similarly, define up to three background colors for bars that do not reach 100% of the previous bar's range.
These thresholds are usually displayed in greenish colors, signaling less significant movements or bearish trends. Like the first set, each color in this set can also be set to activate at different levels below 100%.
By customizing these settings, traders can tailor the 100 Percent Bars feature in Market Pulse to better suit their individual trading styles and strategies. Adjusting aspects like the display toggle and background colors for bars exceeding or not reaching 100% provides a personalized view of market volatility and trend strength, enhancing the app’s functionality for market analysis and decision-making.