A day-trading model that uses volume and the previous day's value area to set bias. If the market opens above yesterday's value area and pulls back into it, go long. If it opens below and pulls back up into it, go short.
If today's sessions open outside the previous day's value area, I'm looking for a pullback for longs. If it's opening outside below and it's pulling back up, I'm looking for shorts. And this is the easiest way to find the bias for your day trades thanks to volume analysis and auction market theory. Value area of yesterday, price opens outside, sellers absorbed, move up. Value area of the previous day, we open outside, test, and we move down for the session. Value area of yesterday, We open outside and we move up even without testing. Value area of the previous day, we open outside, small pullback, and then we move down. Go test this model out and let me know what you think.
