easy · Volume Profile Analysis profile-anatomy

When computing a Value Area (VA) by hand using the 70% convention, you start at the Point of Control (POC) and examine the volume of the price levels above and below.

What is the standard iterative step?

  1. Divide the total range into thirds and designate the middle third as the Value Area.
  2. Add the single highest volume tick regardless of where it is located.
  3. Add price levels one by one in chronological order of when they were traded.
  4. Compare the sum of the next two ticks above with the next two ticks below and add the larger pair.

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