What Is VAL in Trading?
VAL stands for Value Area Low, a key level in volume profile trading. It represents the lowest price level within the value area — the price range where approximately 70% of a session’s total trading volume occurred.
In simple terms:
VAL = the bottom edge of the “fair value” zone
When price approaches the VAL, traders watch closely for signs of support, breakout, or reversal, depending on the overall market context.
How It Works
Volume profile tools break down where trading activity happened most during a given period. The value area is typically defined by:
- VAH (Value Area High) – the top of the 70% volume range
- POC (Point of Control) – the price with the most volume
- VAL (Value Area Low) – the bottom of the 70% volume range
Traders use VAL as a reference level. Common reactions at VAL include:
- Bounce: Price finds support at VAL and reverses upward
- Breakdown: Price breaks below VAL, signaling possible bearish continuation
- Reentry: Price dips below VAL but reenters the value area, suggesting failed breakout
Why It Matters to Traders
- Gives structure to the chart based on volume, not just price
- Helps identify where institutional activity may have occurred
- Works well in range trading, trend breakouts, and mean reversion strategies
- Applies across multiple markets: futures, forex, crypto, indices
