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Value area

The price range containing roughly 70% of a period's volume, centered on the point of control.

A volume profile beside a price chartA price line on the left and, on the right, horizontal bars showing how much volume traded at each price; the longest bar marks the point of control and a shaded band marks the value area.52.051.050.049.0timePRICE OVER TIMEVOLUME AT EACH PRICEVALUE AREAwhere most ofthe volume tradedPOCthe single pricewith the mostvolumeLonger bars mean more shares changed hands at that price.
Volume profile, point of control and value area. Turn the chart on its side and count how much traded at each price instead of at each moment. The longest bar is the point of control, and the shaded band around it is the value area where most of the session's business was done.

The value area is bounded by the value area high (VAH) and value area low (VAL). Inside it, price is considered accepted; outside it, price is either finding new value or about to snap back.

Traders use yesterday's value area as today's reference: opening inside it suggests a range day, opening outside it suggests a trend day if price is accepted there.

Example: yesterday's value area on ES was 5,010 to 5,030 with a point-of-control at 5,022. Today opens at 5,038 and holds above 5,030 for the first hour, which is acceptance above value.

Related: volume-profile, point-of-control, range, trend

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