medium · 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. Split the full session range into thirds and label the entire middle third as the Value Area.
  2. Add only the single highest-volume tick of the whole session, wherever it happens to be located.
  3. Add each traded price level one at a time, in strict chronological order of the moment it was 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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