The CCV setup has been a common favourite among our members.
Best suited for day traders, this strategy is referred to as the 80% setup.
To understand this strategy one should already be familiar with the volume basics, with Fixed Range Volume at the very least.
The reason being is that you will need to identify the VAL and VAH to prepare for this setup.
Of course, having the VAL and VAH is just the beginning of this setup and this tutorial will elaborate on the context.
The CCV setup has been a common favourite among our members.
Best suited for day traders, this strategy is referred to as the 80% setup.
To understand this strategy one should already be familiar with the volume basics, with Fixed Range Volume at the very least.
The reason being is that you will need to identify the VAL and VAH to prepare for this setup.
Of course, having the VAL and VAH is just the beginning of this setup and this tutorial will elaborate on the context.
If you are going to experiment with this strategy, we strongly advise that you take notes and use them as a checklist for entering CCV setups.
NOTE: do NOT become dependent on this strategy alone, and don't trade it blindly, if confluence elsewhere shows another potential setup don't overlook it.
Key Points of the Lesson
UTILITY
Strong strategy in range-bound environments ⇒ ranging occurs more often than trending.
Clear criteria, high probability when market context fits.
Reinforces the power of range trading.
IMPLEMENTATION
Footprint statistics software ⇒ Exocharts, Atas.
Identify the Daily Open and the previous day Value Area.
Look for the Daily open to be outside of the pdVA.
Check market context ⇒ ideally previous day(s) range-bound price action.
Wait for acceptance within the pdVA ⇒ two consecutive 30-minute candles closes, ideally with an increase in volume.
Enter trade expecting a full rotation within pdVA ⇒ VAH to VAL or vice versa.
PRACTICAL EXAMPLE
TIPS & TRICKS
CCV will not work every time (80% setup) ⇒ always check the market context before entering the trade.
Use other technical tools, market structure ⇒ Look for confluence.
Can work on any asset with high volume.
If price breaks out of a range (pdVA) and establishes a low-volume range ⇒ ideal conditions for the CCV.
If price breaks of a range (pdVA) with large volume, the setup rules might fit, but the market context does not.
Daily timeframe recommended ⇒ previous day Value Area.
TAKE HOME MESSAGE
CCV setup re-entering the pdVA and full rotation.
Market context is very important.
Best in range-bound environments.