CCV Setup

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.

Time Stamps

1:58 – LINK Previous COTW (DO NOT TRADE THIS)

• Although Daniel is teaching more advanced theories – the more videos we go through, the more advanced the content gets – we should not forget the core key theory. It all starts with horizontal levels and Fibonacci.
• LINK has amazing respect for the 0.66 and in general, it trades very technically.

7:20 – THE 80% TRADE SETUP

• Price remains range-bound more than it is trending, therefore we long the lows and short the highs instead of trading for breakouts constantly.
• The 80% setup we have is when the market opens outside the previous day VAH or VAL but then becomes accepted back into the VAH or VAL.
• If day opens outside the value one would expect continuation. If you get acceptance outside of that value and volume increases, then you don’t expect the price to reverse back to the previous day's value. So, if it does, the value has not shifted and it remains the same as the previous day, thus you expect the full rotation back to the high/low of the previous day.
• The acceptance back inside the VAH or VAL is classed by two consecutive 30-minute candle closes in the value area with the volume (not required though). The theory behind this setup is that a VAH/VAL should act as a support/resistance level once broken. And if the price is in a range and the market is opening outside of the previous day’s VA but then gets accepted back into it, you would expect the price to continue to range back to the other side of the previous day’s VA.
• Context and confluence are very important, you should not blindly enter a trade based on this theory.
• To get the highest probabilities trades you have to factor in confluences and context. Two key questions to ask yourself when wanting to trade:
• What direction is the market trying to go?
• Is it doing a good job in its attempt to go that way?
• Daniel named this theory CCV – Chart Champions Value setup

15:20 – EXAMPLE OF THE TRADE DANIEL DID NOT TAKE

• Context – nothing in the chart was signalling the rejection
• Also, you need to have a feel for the market which comes with experience.

22:20 – CCV

• The distance from the daily open to the pdVA and the width of the VA are two important components we have to review before entering a trade under this setup. If yesterday was range bound and the following day opens outside the VA in a low volume range, one would expect this to be the ‘perfect’ scenario for a setup.
• Whereas if the price has just broken out of the range on large volume, the setup rules would be met officially.   But of course, it does not make sense to trade the setup.

25:22 – EXAMPLES OF CCV 

36:23 – CCV RECAP

• We always know to check the context and confluences before entering the trade
• If prior day was range bound it increases the probabilities the setup will be taken
• If price closes outside the value and the following day gets accepted back into prior VA price is telling up it is likely to continue to be range bound as the market works out its true value

41:17 – Q&A

• This theory works across all the markets
• CCV does work on HTF as well but the theory is a little bit different (needs a whole live stream)
• If the setup is presented but the R:R ratio is not good, Daniel will still take the trade. He is a pro, so he ‘bends’ the rules a bit for himself
• You don’t need to wait for two 30 minute closes if you see the volume coming in
• The liquidity, volume, OI and context in the range that you are trading determine either the price will slowly grind or there will be a quick wick. There is no guarantee, just likelihood. Every setup has a different context
• Invalidation of this trade is based on MS. Daniel uses wide stop losses, tight stop loss can actually lose you a lot of money. So that’s the irony – people use tight stop lose in order to not lose much money but at the end the actually lose more money because they are continuously getting stopped out.
• Daniel does not like the session volume on Trading View because it is calculated differently than on other (pro) platforms.
• In Trading View you can mark the daily open manually, then capture the 24 hours before daily open and you get the pdVAH and pdVAL.

1:07:10 – RECAP