Value Area (VA)

This is the price range on a Market Profile chart which is represented by 66% of Time Price Opportunities ( TPO s) -which would usually fall within one standard deviation of the mean.

Since we can use this to identify at what levels the market is spending most of its time and thereby accepting value, we have an insight to watching if market action is responsive outside this area, thereby confirming the price range, or whether initiation is taking place and thereby causing a trend to occur.

See Also: Online share dealing service Stockmarket Centre

Last Updated: June 2006 © Moneyextra.com

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