Value area high and low explained in one line: they are the top and bottom of the price band where roughly 70% of a session’s trading took place. The point of control (POC) is the single busiest price inside that band. Together they show where the market agreed on a fair price, and where it did not.
Quick answer: what are the value area high and value area low?
On a Market Profile or volume profile chart, the value area is the range holding about 70% of a session’s activity, built outward from the busiest price, the point of control. Its upper edge is the value area high (VAH) and its lower edge is the value area low (VAL). Traders watch whether price is accepted or rejected at those edges.
What the value area actually measures
A profile stacks activity at each price, so you can see where the market spent its effort. If you are new to the chart itself, start with our guide to market profile trading for beginners.
Most sessions build a rough bell shape: a fat middle where both sides were happy to trade, and thin tails. The value area is that fat middle. The 70% figure is a convention, chosen because it is close to one standard deviation (about 68%) of a normal distribution.
- Point of control (POC): the price with the most activity, the market’s best guess at fair value for that session.
- Value area high (VAH): the upper edge of the 70% band.
- Value area low (VAL): the lower edge of the 70% band.
A classic Market Profile counts time, in letters called TPOs (time price opportunities); a volume profile counts traded volume. The value area idea is the same in both; our guide to Market Profile vs volume profile explains where the two differ.
How the value area is calculated, step by step
The calculation starts at the POC and works outward until 70% of the activity is enclosed. The common method looks like this.
- Count the total activity for the session (TPOs or volume) and work out 70% of it.
- Start at the POC row.
- Compare the row directly above the band with the row directly below it.
- Add whichever row has more activity, and repeat.
- Stop once the band holds at least 70%. The top row is the VAH and the bottom row is the VAL.
Some platforms compare two rows at a time, target 68% instead of 70% or use different session hours. That is why two charts of the same market can show slightly different levels.
| Price | TPO count | In value area? |
|---|---|---|
| 5030 | 2 | No |
| 5025 | 1 | No |
| 5020 | 3 | Yes (VAH) |
| 5015 | 4 | Yes |
| 5010 | 5 | Yes (POC) |
| 5005 | 2 | Yes (VAL) |
| 5000 | 1 | No |
| 4995 | 2 | No |
Example (hypothetical): the session holds 20 TPOs, so the target is 14. Starting at 5010 (5), we add 5015 (4 beats 2), then 5020 (3 beats 2), then 5005 (2 beats 1), reaching 14. The value area runs from 5005 to 5020, with the POC nearer the bottom of the band.
VAH, POC and VAL compared
Each level answers a slightly different question, so we do not treat all three as identical lines.
| Level | What it marks | Common reading |
|---|---|---|
| VAH | Top of accepted prices | Above it, price is expensive |
| POC | Busiest single price | A magnet in quiet sessions |
| VAL | Bottom of accepted prices | Below it, price is cheap |
“Expensive” and “cheap” are relative to yesterday’s agreement, not a forecast. New information can shift fair value in minutes.
How traders use the value area high and low
Acceptance or rejection at the edges
The key test is whether price is accepted beyond an edge or rejected back inside. Acceptance usually means time and trade building beyond VAH or VAL, for example two or more 30-minute periods holding outside. Rejection is a quick probe that fails back inside.
Rejection often leads to a rotation back towards the POC or the far edge. Acceptance suggests value is moving, the same idea we use in how to avoid false breakouts.
Where the session opens
Many traders compare the open with the previous session’s value area. An open inside value hints at a balanced day; an open outside value means the market is testing a new price.
The “80% rule” comes from this. It says that if price opens outside the prior value area, gets back inside and holds there for two 30-minute periods, it often rotates to the far edge. Treat the 80% as a name, not a measured success rate.
Combining value areas with other levels
The value area is most useful where it lines up with structure you already trust, such as a prior VAL on a fresh demand zone; see how to draw supply and demand zones. Our earlier desk post on reading the US500 with Market Profile shows value areas used on an index.
Worked example: a value area re-entry on a £5,000 account
Example (hypothetical): using the profile above, yesterday’s value area is 5005 to 5020 with the POC at 5010. Today the index opens at 4996, below the VAL, then climbs back to 5007 and holds inside value for two 30-minute periods.
The stop goes at 4999, below the low of the re-entry move, so the risk is 8 points. With 1% risk on a £5,000 spread betting account (£50), the size is £50 ÷ 8 = £6.25 per point. The target is the VAH at 5020, 13 points away, or about £81 if reached. For more on the sizing step, read how to calculate position size for CFDs and spread bets.
Spread bets and CFDs are leveraged, so losses can exceed the planned amount if a stop fills at a worse price. Retail CFD rules, now permanent in the UK, cap leverage at 30:1 to 2:1 and require a warning showing how many retail accounts lose money. Had the stop needed 15 points, the target would pay less than the risk and we would skip the trade.
Common mistakes with the value area
- Fading every edge. On a trend day price can accept beyond VAH or VAL and keep going.
- Ignoring platform settings. The percentage, TPO or volume, and session hours all move the levels.
- Treating the POC as a wall. It is a fair-value reference, not a barrier.
- Trading levels into news. A major release can reset value instantly, which is one of the conditions in when not to trade and stay flat.
- Stops inside the noise. A stop placed exactly on the VAL invites a wick to take it out; our guide on where to place a stop loss with price action covers buffers.
Frequently asked questions
Why is the value area 70% and not another number?
Seventy per cent is a convention close to one standard deviation of a normal distribution, which covers about 68%. Some platforms use 68% instead, so levels can differ slightly between charts.
Is the point of control always in the middle of the value area?
No. The POC is the busiest price, and the value area is built outward from it towards whichever side has more activity. A POC near one edge tells you trade was skewed towards that side.
Should I use the previous session’s value area or the developing one?
Most traders plan from the previous session’s completed value area, because its levels are fixed. The developing value area moves as today’s session unfolds.
Do value areas work in forex?
Spot forex has no central exchange, so forex volume profiles usually rely on tick or broker volume. A time-based Market Profile avoids that, one reason some forex traders prefer it.
Next steps
Mark yesterday’s VAH, VAL and POC on a market you follow, and note whether each open is inside or outside value. Our beginner’s guide to Market Profile charts covers the wider method, and how much to risk per trade helps you size any idea you test.
Reading where price sits before you trade is a core part of our price action trading course, and the basics section is free to explore first.
This article is for education only and is not financial advice. Trading leveraged products such as CFDs and spread bets carries a high risk of losing money.
