Below value
Volume Profile Analysis glossary · Auction Theory & Market Profile (TPO)
Definition
A session whose Value Area is entirely below the prior session's VAL. Implies downward re-pricing of fair value.
Below value in plain English
The 'Value Area' is the price band where the bulk of a day's trading happened — where buyers and sellers mostly agreed things were fairly priced — and VAL is the bottom edge of that band. When today's entire Value Area sits below where yesterday's ended, we say the market is trading 'below value,' meaning the crowd has collectively decided the fair price is now lower than it was. It's like a used-phone market where everyone suddenly agrees last week's model is worth less this week — the whole 'fair range' has shifted down.
Learn these first
Related Volume Profile Analysis terms
Volume Profile Analysis practice questions · Volume Profile Analysis flashcards · Volume Profile Analysis study guide