The Ledge Methodology is a derivation of the Crossover Scalp. It uses the exact same chart as the Crossover Scalp but in a different way. When markets are calm and orderly, the Crossover Scalp has proven to be a very effective tool in our trading in the STO Room. But as we know, the markets don’t always “play by the rules”. One of those rules is that markets tend to respect the +/- 2 StDev prices around the VWAP. That does not necessarily happen when we experience increased volatility such as news hitting the tape or something along those lines.
