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Lessons › Module 3: Value › Lesson 3.4

Lesson 3.4 · about 5 minutes

Value Migration Day over Day

ObjectiveAfter this lesson you can label how value moved from one session to the next: higher, lower, overlapping or inside.

Concept

Comparing today's Value Area with yesterday's shows where value is migrating. This course uses four labels. Higher: today's VAL is above yesterday's VAH, so the two Value Areas do not overlap. Lower: today's VAH is below yesterday's VAL. Overlapping: the two Value Areas share some prices, but today's is not entirely inside yesterday's. Inside: today's Value Area sits entirely within yesterday's. As lesson 1.3 showed, overlapping or inside value suggests balance, and value that moves higher or lower with no overlap suggests imbalance. Compare one pair of sessions at a time.

Five profiles side by side with each Value Area shaded: Day 1 100-104, Day 2 106-110 (higher), Day 3 104-108 (overlapping), Day 4 105-107 (inside) and Day 5 99-103 (lower). A B D E F G H A B D E F G H A B C D E F G H I A B C H I C I J C I J D E F G H E G J J Day 1 VA 100-104 POC 102 A B D E F G H A B D E F G H A B C D E F G H I A B C H I C I J C I J D E F G H E G J J Day 2: higher VA 106-110 POC 108 A B C H I A B C D E F G H I A B D E F G H A B D E F G H C I J C I J D E F G H E G J J Day 3: overlap VA 104-108 POC 106 A D A D E J A B C D E F G H I J B C D E F G H I J G J G J Day 4: inside VA 105-107 POC 105 A B C H I A B C D E F G H I A B D E F G H A B D E F G H C I J C I J D E F G H E G J J Day 5: lower VA 99-103 POC 101 113 112 111 110 109 108 107 106 105 104 103 102 101 100 99 98 97 96 XYZ (hypothetical): five sessions of value migration Hypothetical data. Shaded = each day's Value Area; orange line = POC
XYZ (hypothetical): five sessions of value migration. Hypothetical, synthetic data generated from code. Five profiles side by side with each Value Area shaded: Day 1 100-104, Day 2 106-110 (higher), Day 3 104-108 (overlapping), Day 4 105-107 (inside) and Day 5 99-103 (lower).

Worked example

Five hypothetical XYZ sessions. Day 1's Value Area is 100–104. Day 2, higher: value forms at 106–110, and its VAL of 106 is above Day 1's VAH of 104, so there is no overlap. Day 3, overlapping: value is 104–108, sharing 106–108 with Day 2, and the POC moves from 108 down to 106. Day 4, inside: value is 105–107, entirely within Day 3's 104–108. Day 5, lower: value is 99–103, and its VAH of 103 is below Day 4's VAL of 105. Days 3 and 4 suggest balance. The moves into Day 2 and Day 5 suggest imbalance.

Key takeaway

Higher or lower with no overlap suggests imbalance. Overlapping or inside value suggests balance.

Check yourself

Pick an answer to see instantly why it is right or wrong.

Question 1 of 3

Yesterday's Value Area was 100–104 and today's is 106–110. How did value migrate?

Question 2 of 3

Yesterday's Value Area was 104–108 and today's is 105–107. Which label fits?

Question 3 of 3

In the example, value moves from 105–107 on Day 4 to 99–103 on Day 5. What does that suggest?

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