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80% Rule

By LuxAlgoMar 26, 2026

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80% Rule mechanizes the 80% rule rotation setup from open to resolution: it builds the prior session's value area, classifies today's open against it, and signals only once price has re-entered the area and held inside for the acceptance time. Each step is marked on the chart and mirrored in a live status table.

The value area comes from a 25-row profile of the completed session, expanded around the point of control to 70% of its weight; the 60-minute default clock matches the classic two 30-minute periods of acceptance.

How to Trade the 80% Rule?

  • Open outside value: a circle marks an open above or beneath the prior value area — the precondition, not yet a signal.
  • Re-entry triangle: price closed back inside and the acceptance clock is running.
  • 80% Rule label: acceptance confirmed — bullish after an open below value, bearish after an open above — targeting the opposite boundary, with the prior POC as interim reference.
  • Outcome tags: ✓ marks rotation complete; ✕ marks a rejected re-entry or a stop-out back through the entry side.

Run it on a 30-minute or lower timeframe so the clock resolves cleanly, and cross-check the levels against a full volume profile when methods disagree.

80% Rule Settings

  • Value Area % (default 70): share of the profile weight around the POC that defines value.
  • Profile Rows (default 25): profile resolution; more rows sharpen the levels, fewer smooth them.
  • Profile Weighting (default Volume): or TPO (Time) for symbols without reliable volume.
  • Custom Session (default off): restricts the tool to a session window (default 0930-1600).
  • Acceptance Time (Minutes) (default 60): time closes must hold inside value before the signal fires.
  • Style toggles cover the value area box, POC line, signal labels, step markers and the status table.

Frequently Asked Questions

Does the 80% Rule work on daily charts?

No — the setup needs the prior session's intraday profile, so it runs on intraday charts only and the table says so otherwise. A 30-minute or lower timeframe keeps the acceptance clock faithful to the classic timing.

How is this different from the Auction Failure indicator?

This build trades one script — open outside, re-enter, accept, rotate — while the Auction Failure tool watches probes beyond many references all day and classifies how each one dies.

What does the 80% figure refer to?

Folklore shorthand from profile trading for how often the setup is said to rotate — a label, not a statistic this indicator measures or promises. Treat the signal as structured context for a trade whose target and invalidation are known before entry.

Original indicatorBuilt in-house by LuxAlgo

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