Value Area High and Low

The Value Area High and Low define the price range where a significant portion of the total volume, typically 70 percent, was traded during a session. This range represents the zone where the market considers the asset to be fairly valued.

When price breaks outside this area, it indicates that the market is searching for a new valuation, potentially leading to a trend shift. Traders watch these levels closely to identify potential breakouts or mean reversions.

If the price remains within the value area, the market is considered to be in a range-bound state. These levels are critical for understanding the structural boundaries of price action within a given timeframe.