Value Area Low
Order Flow Analysis glossary · Footprint & Delta Analysis
Definition
The lower boundary of the value area — the lowest price within the range that contains 70% of a session's volume. The VAL typically acts as support when approached from above and as resistance when the market opens below the value area. Massive passive buying that absorbs aggressive selling at the VAL is a classic responsive-buy signal: enter long just above the level with the stop placed below the absorption.
Value Area Low in plain English
This is the twin of the Value Area High. The value area is the price band holding about 70% of the day's trading — where the crowd treated prices as fair — and the Value Area Low (VAL) is the bottom edge of that band, the floor of the "comfortable room." When price sinks down to it, it often bounces back up (support); if the crowd has already moved below it, that edge can flip into a ceiling instead (resistance). Watching how price behaves right at the VAL tells you whether buyers are still willing to defend the bottom of fair value.
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