hard · Order Flow Analysis
In the provided 'Value Area' calculation example, if the target is to contain 70% of the session's volume, what determines whether you add the price pair 'above' or 'below' the current POC to the Value Area first?
- The pair closest to the 'Previous Day's Close' is always added first to maintain mark-to-market consistency.
- You add the pair that has the highest 'Ask Volume' to identify where aggressive buying is most concentrated.
- You compare the combined volumes of the next two prices above versus the next two prices below and add the higher pair.
- You alternate adding one price above and one price below until the 70% threshold is met.
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