Value Area (VAH / VAL)
The price range where ~70% of volume traded: bounded by the VAH (high) and VAL (low).
The value area frames where the market deemed price 'fair'. While inside it, the market is balanced; leaving and accepting beyond the VAH or VAL signals imbalance and often a trend.
In depth
The value area frames the price range where about 70% of a period's volume traded, bounded by the VAH (Value Area High) at the top and the VAL (Value Area Low) at the bottom. It's the statistical translation of 'where the market deemed price fair': the core of balance.
The read happens at the edges. While price stays inside the value area, the market is balanced (range context). An exit from the VAH or VAL followed by acceptance (price holds beyond) signals imbalance and often the start of a trend; a rejected exit sends price back inside and confirms the range.
On DeepCharts, overlay yesterday's value area on today's price. The edges (VAH/VAL) are decision levels: play the return into value on rejection, or continuation on clean acceptance beyond, confirmed by delta.
Price breaks yesterday's VAH and holds above → bullish acceptance.
Taking every value-area exit for a trend. Most exits fail and revert (false break). It's acceptance, price holding and trading beyond, that separates a real break of balance from mere spillover.
Frequently asked
Why 70% of volume?
It's a convention inherited from Market Profile: roughly one standard deviation around the mean price, about 70% of activity. It isolates the balance zone from the noise of extremes.
Value area vs VWAP: what's the link?
Both measure value, differently. VWAP is the volume-weighted average price (a line); the value area is a range (VAH/VAL) from the volume profile. They're often used together.
How to play an open outside the value area?
An open above yesterday's VAH, if accepted, leans bullish; if rejected, it calls for a return into value. The reaction at the edges sets the day's bias.
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