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

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 solution in decision making? ›

The Pareto 80/20 rule, which states that 80% of the effects come from 20% of the causes, applies to economy just as well as it does to time management and any other field of work. The trick is not to get bogged down by numbers and percentages but understand the core law of the Pareto 80/20 rule.

What is the 80 percent rule for productivity? ›

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% rule 1 point? ›

The 80% rule means that an insurer will only fully cover the cost of damage to a house if the owner has purchased insurance coverage equal to at least 80% of the house's total replacement value.

What is the 80% done rule? ›

That is where the the 80% rule come in. This principle, grounded in the philosophy of efficiency and progress, emphasizes that achieving perfection isn't always necessary or even attainable. Instead, aiming for 80% completion can lead to faster results, increased innovation, and a culture of agility.

How does the 80 rule work? ›

When it comes to insuring your home, the 80% rule is an important guideline to keep in mind. This rule suggests you should insure your home for at least 80% of its total replacement cost to avoid penalties for being underinsured.

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 decision? ›

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 20 rule and the Eisenhower Matrix? ›

Relation to the Pareto Principle

The purpose of the Eisenhower Matrix is to help users identify the most impactful 20 percent of tasks to focus on, and avoid wasting time on the less impactful 80 percent.

What is the 80 20 rule for procrastination? ›

What is the 80/20 Rule? The 80/20 rule is the concept that 80% of your revenue or success comes from only 20% of your efforts or customers. If you look at the activities you completed during the day, you will find that the top 20% of your daily activities will result in 80% of the results that you achieve.

What is the 80 20 rule of focus? ›

When applied to work, it means that approximately 20 percent of your efforts produce 80 percent of the results. Learning to recognize and then focus on that 20 percent is the key to making the most effective use of your time. Here are two quick tips to develop 80/20 thinking: Take a good look at the people around you.

How do you give 80% at work? ›

How to use the 80/20 rule
  1. Examine all of your daily or weekly tasks.
  2. Prioritize your most important tasks.
  3. Identify the tasks that offer the greatest return.
  4. Brainstorm how to delegate or remove tasks that give less return.
  5. Make a plan that outlines time and resources versus prioritized tasks.
Feb 3, 2023

What is the 80% rule formula? ›

The 80/20 rule is a simple concept that can be applied to many situations. It states that 80% of the results come from 20% of the effort. This means that you should focus on the 20% of your efforts that will lead to the greatest reward, or yield the highest value for your time and energy.

What is the 80 percent goal? ›

The 80 20 rule is one of the most helpful concepts for life and time management. Also known as the Pareto Principle, this rule suggests that 20 percent of your activities will account for 80 percent of your results. This being the case, you should change the way you set goals forever.

What is the 80-20 rule in relationships? ›

But can the law of attraction be boiled down to a formula? 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.

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% rule in hiring? ›

The rule states that employers should be hiring protected groups (i.e. those who are different from white men in terms of ethnic group, race, or sex) at a rate that is at least 80% that of a non-protected group (such as white males).

What is the 80-20 rule explained simply? ›

The 80-20 rule, also known as the Pareto Principle, is a familiar saying that asserts that 80% of outcomes (or outputs) result from 20% of all causes (or inputs) for any given event. In business, a goal of the 80-20 rule is to identify inputs that are potentially the most productive and make them the priority.

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