What is the Value Area?
Definition
The Value Area is the price range in which approximately 70% of a session's volume traded. It is defined by three levels: the Value Area High (VAH), the Value Area Low (VAL), and the Point of Control (POC) — the single price where the most volume occurred. These levels represent where the market agreed that price was fair during that session.
Why it matters
The Value Area is a consensus zone. When price is inside it, the market is in balance — participants agree on fair value. When price moves outside, it signals a directional auction. MarketWebs overlays the Daily Value Area — built from the prior day's price action — onto the current session: if price opens above the Daily VAH, the auction is exploring higher ground; if it opens below the Daily VAL, the opposite is true. The same reference works on the Weekly, Monthly, and Yearly Value Areas, which MarketWebs also draws — the higher the timeframe, the more weight the level carries.
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