Value Area

[Olumide Olorunfemi]

Hi everybody, I like the wonderful job you are doing to help each other. I'm new both to trading and the community.
My question is how can the value area in e-mini S&P 500 be calculated or determined?

 

[dcraig1]

Hi everybody, I like the wonderful job you are doing to help each other. I'm new both to trading and the community.
My question is how can the value area in e-mini S&P 500 be calculated or determined?

You can find some educational material on Market Profile here:

CBOT - Overview

For an approximation, you can use:

VAH: (Value Area High) The price such that 15% of volume for the session was traded at higher prices.

VAL: (Value Area Low) The price such that 15% of volume for the session was traded at lower prices.

Value area is the bit in between.

This is not exactly what MP theory uses - you need to study market profile to get the exact definition.

 

[Rhody Trader]

Right. The value area is the price range in which 70% of the TPOs can be found. Or if you're using volume, 70% of the volume.

 

[laptop1]

Hi everybody, I like the wonderful job you are doing to help each other. I'm new both to trading and the community.
My question is how can the value area in e-mini S&P 500 be calculated or determined?

Here is a link, where you can get Free Daily Value Areas

Day Trading Forum - Value Areas and Point of Control 2008 Q1

 

[tradermonkey]

I disagree that is not an accurate way to calculate the value area. Using volume method techniquely you could have 99% in there if there are extremes on the low and extremes on the high. Rarely if ever is it 70% with the TPO it is closer. I use My Trading Network under free section for the ES and also Emini Day Trading.