The value area low (VAL) is the bottom of the area where most of yesterday's volume traded. It is one of the most reliable reference points for the next session.

The idea

If price opens above the VAL and pulls back to it, buyers who saw value there yesterday often defend it again. If price opens below the VAL and cannot get back above it, sellers are in control and value is moving lower.

The long setup, step by step

1. Mark yesterday's VAL before the open.

2. Wait for price to come back to it. Do not chase it before the touch.

3. Look for confirmation: absorption at the bid, a delta flip, or a reclaim after a quick probe below.

4. Enter with a stop just beyond the probe low.

5. First target is the POC. Second target is the VAH.

The failure

If price breaks the VAL and holds below it for a full 30-minute period, the setup has failed. That often leads to a move toward the next low volume area below. Many traders flip their bias here rather than keep buying.

Filters that help

• Gamma context. Above the gamma flip, the bounce works more often.

• Time of day. Tests in the first hour are usually more reliable than late in the session.

• News. Avoid the setup into major data releases.

In HOC Charts

Session Volume Profile marks the VAL, POC and VAH for each day. Add CVD under the chart to check confirmation at the level.