6. Reversal - 100 Percent Bars
Overview of the 100 Percent Bar Trade Model
Strategy Concept: The 100 Percent Trading Strategy, developed by Online Trading Solutions, aims to identify instances where the range of the current bar exceeds 100 percent of the previous bar's length.
Market Implication of the 100 Percent Bar: When the current bar's range surpasses that of the previous bar, it often signifies a potential market pause and subsequent retracement. This model anticipates the market retracting to the 50% level of the triggering bar, typically within the same bar or the next 1 to 3 bars.
Strategic Trading Approaches:
Caution Against Immediate Entry: The strategy advises against entering long positions during an upward move or short positions during a downward trend when a 100 Percent Bar is identified. Immediate entry under these conditions may result in unfavorable pricing. Traders are encouraged to wait for the anticipated retracement.
Fading the Pattern: Alternatively, traders can opt to 'fade' the 100 Percent Bar pattern by trading against the current momentum, anticipating a market pullback.
Key Insights: This model provides traders with valuable insights, enabling them to make informed decisions by identifying potential turning points and market retracements.
More Information on the OTS 100% Bar trading strategy -
Reversal - 100 Percent Bars | Settings
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.