80% Rule (2024)

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Definition of '80% Rule'

The 80% Rule is a Market Profile concept and strategy.

If the market opens (or moves outside of the value area ) and then moves back into the value area for two consecutive 30-min-bars, then the 80% rule states that there is a high probability of completely filling the value area.

The rule can be misleading, in that you don't have to see both 30 min bars Close within value. The first bar can enter and close within the Value Area and the second bar opens within the value area we have met the rule criteria.

Testing on the E-mini S&P500 has shown that this rule should probably be called the 60% rule and not the 80% because it only works 60% of the time.


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80% Rule (2024)

FAQs

80% Rule? ›

The 80-20 rule is a principle that states 80% of all outcomes are derived from 20% of causes. It's used to determine the factors (typically, in a business situation) that are most responsible for success and then focus on them to improve results.

What is the 80 percent rule? ›

The 80% rule was created to help companies determine if they have been unwittingly discriminatory in their hiring process. The rule states that companies should be hiring protected groups at a rate that is at least 80% of that of white men.

What is the 80% done rule? ›

Productivity. You can use the 80/20 rule to prioritize the tasks that you need to get done during the day. The idea is that out of your entire task list, completing 20% of those tasks will result in 80% of the impact you can create for that day.

What is the 80 percent strategy? ›

The 80/20 rule, also known as the Pareto principle , is a marketing strategy that says 80% of your results are a product of 20% of your actions. Economist Vilfredo Pareto thought of the idea when he realized approximately 80% of his nation's land belonged to 20% of its population.

What is the 80-20 rule real examples? ›

80% of crimes are committed by 20% of criminals. 80% of sales are from 20% of clients. 80% of project value is achieved with the first 20% of effort. 80% of your knowledge is used 20% of the time.

What's the 80/20 rule in relationships? ›

The 80/20 relationship theory states that you can only get about 80% of your wants and needs from a healthy relationship, while the remaining 20% you need to provide for yourself. Sounds like the perfect excuse to treat yourself to a spa day. This idea of an 80/20 time split is nothing new.

What is the 80-20 rule in leadership? ›

The 80/20 rule states that 80 percent of outcomes are determined by 20 percent of input. For example, if your goal is to acquire 100 new leads, 80 leads would come from only 20 percent of what you did to get them. This is why it's important to know how and where your effort makes the most impact.

What is the 80/20 rule for decluttering? ›

'The 80/20 rule is the concept that we use 20% of what we own 80% of the time,' says Sara Bereika, founder of Sara Jane Organizing. 'That means the remaining 80% (the stuff we use less frequently) is clutter. More than ever many of us have aspirations to live more simple lives.

What is the 80-20 rule for employees? ›

The 80/20 Principle: 20% of Employees Shoulder 80% of the Work. The Pareto Principle suggests that a small minority of employees is responsible for the majority of an organization's productivity. These 20% are the floor leaders – the ones who know what to do and simply take care of things.

What is 80% 0f 20? ›

Answer: 80% of 20 is 16.

What is the 80 percent rule for perfectionist? ›

Generally it means roughly 80% of your outcomes come from 20% of your inputs. In the case of perfectionism, the last 20% will take 80% of your effort, such is the drain of perfectionism. Let's take the positive aspect of your perfectionism. Your 80% is actually better than most people's 100%.

What is the 80-20 rule of success? ›

The 80/20 Principle states that 80% of the output or results will come from 20% of the input or action. The 80/20 Principle has historically been most popular in business management situations. Businesses often found that roughly 20% of their customers brought in 80% of their sales.

What is the 80 percent rule of thumb? ›

Retirement Rules of Thumb

The 80 Percent Rule is defined as having enough retirement savings to replace 80 percent of your pre-retirement income.

Does the 80-20 rule still apply? ›

This is why the 80-20 rule is usually used in business, but you can also apply it to your personal goals, like finances and spending or even learning a new skill. The 80-20 rule requires you to throw out a few time-honored myths about productivity. First, the myth that everything matters equally – it doesn't.

Why is the 80-20 rule important? ›

Simply put, the 80/20 rule states that the relationship between input and output is rarely, if ever, balanced. When applied to work, it means that approximately 20 percent of your efforts produce 80 percent of the results.

What is an example of the Pareto rule? ›

20% of drivers cause 80% of all traffic accidents. 80% of pollution originates from 20% of all factories. 20% of a companies products represent 80% of sales. 20% of employees are responsible for 80% of the results.

What is the 80 rule for discrimination? ›

The four-fifths or 80% rule is described by the guidelines as “a selection rate for any race, sex, or ethnic group which is less than four-fifths (or 80%) of the rate for the group with the highest rate will generally be regarded by the Federal enforcement agencies as evidence of adverse impact, while a greater than ...

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