Value area (VA)

Example

Suppose a session traded 10 million shares, with the POC at $45.00. Adding price rows around $45.00, the busier neighbor first, until they hold 7 million shares, or 70%, gives a value area from $44.20 to $46.10. If the next day opens at $46.60, the stock is starting above the prices where most of yesterday’s trading took place.

Hypothetical numbers, for illustration only.