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Value Area


Can somebody please explain what "Value Area" is and how to trade this area.

Cheers'
Rockey
Have you read any of the books on Market Profile?
No not yet, but I am going to buy Market Profil. Iv'e also had a look at this video link that was of help. help.http://www.cbot.com/cbot/pub/page/0,3181,1184,00.html

Bill

If you're going to read any book I'd say that you're best off starting with Dalton's most recent book Markets in Profile.

You can't really buy Market Profile. You can buy books that explain it and software that creates the Market Profile graphic.
Thanks day trading

I will take a look
Day trader

Are you going to post the VA numbers today?

Thanks
Bill
Apologies - just done it now.
Is that June or Sept VA numbers?
September.
Hi day trader

Do you use the VA on a daily basis and if so, do you find it helps with your trading....I take this time to say I appreciate your service on this site and for your daily VA numbers.

Keep up the good work.

Bill
Yes the VA is one of the more important areas and S/R lines. If I were forced to choose between using just VA's and Pivot Points, for example, I would use VA's because I believe that they are more significant. I also believe that clusters are important as I do in the failure of an important S/R line. The failure concept I got from Linda Raschke. She said something along the lines that if you take a trade based on an important support line and that support line fails in a spectacular then the market is showing no support for the support and you'd better join the bears.
The Market Profile TPO structure was created to proxy volume back in the days when volume data was difficult to come by and difficult to chart in this manner. Theoretically a volume profile should be superior but if more traders are using a Market Profile then that could swing the balance.