What is VAL and VAH and all those other indicators
7/28/2025 09:36am
**Bottom-line first 🏁**
VAH (Value Area High), VAL (Value Area Low) and POC (Point of Control) are reference prices produced by “Market Profile / Volume-Profile” studies. They highlight where most trading activity happened during a chosen session and are widely used to spot high-probability support-and-resistance zones.
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Key labels you see on the screenshot
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| Label | Full name | What it represents | Why traders watch it |
|-------|-----------|--------------------|----------------------|
| **VAH** | Value Area High | Upper boundary of the “value area” – the price at which the top ~70 % of the session’s volume (or TPO count) ends. | Often an initial resistance level; a move above VAH suggests initiative buyers gaining control. |
| **VAL** | Value Area Low | Lower boundary of the value area – the bottom price that still keeps ~70 % of volume inside. | Frequently acts as support; a flush below VAL signals sellers dominating. |
| **POC** | Point of Control | Single price level with the *highest* traded volume (Volume Profile) or the *highest* number of 30-minute TPO letters (TPO Profile). | Considered the market’s fair price for that session; price gravitating back to POC indicates acceptance. |
| **H / L** | Swing High / Swing Low markers from your “SRchannel” script | The indicator is marking local highs (H) and lows (L) it considers significant. | Helps visualise short-term pivots that may become minor support/resistance. |
| **SRchannel…** | Support-Resistance Channel (the line that reads “10 High/Low …” on the chart header) | An automated band that plots recent high- and low-based zones as potential S/R. | Gives quick visual context for trading ranges, breakouts, or pullbacks. |
| **Up/Down Vol 1** | Up vs. Down Volume sub-panel | Compares volume on up-ticks (green) vs. down-ticks (red). | Gauges the conviction behind price swings. |
| **Mom 10 close** | 10-period Momentum | Plots rate-of-change of closing price. | Momentum confirmation / divergence spotting. |
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How to use VAH, VAL & POC in practice
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1. **Reversion trades (fade):**
• If price stretches *above* VAH but can’t hold, traders look to fade back toward POC, betting the auction returns to “fair value.”
• Conversely, a dip *below* VAL that quickly stalls can be faded long toward POC.
2. **Break-out trades (initiative):**
• A strong close above VAH with volume is seen as fresh acceptance of higher prices; the prior VAH may become support.
• A decisive break below VAL signals sellers taking control; VAL then flips to resistance.
3. **Intraday bias filter:**
• Trading *inside* the value area implies balance → scalp or mean-reversion tactics.
• Sustained trading *outside* the value area implies imbalance → trend-following tactics.
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Quick mental checklist ✅
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• POC = Magnet
• VAH/VAL = Edges of acceptance
• Price + Volume confirmation determines whether edges hold or break.
Feel free to ask if you’d like a live example calculated on XRP or another asset, or a deeper dive into the SRchannel parameters. Happy trading 🚀