i have drawn the value area along with its limits and control price.
What observations can be made by analyzing each component?
The value areas. Each value area is taking shape at a price level lower than the previous. This is a clear indication of a downtrend. The control price it has a downwards slope. Another indication of a downtrend. In a downtrend, when price rotations become small and they happen in the upper part of the value area, the trend is most likely to end. The narrower the rotations, the bigger the break of value will be.There is less trading activity below the control price so the market has to move higher and find another control to gravitate in order to facilitate trading on both sides of the value area.The less time price spends at a certain price level, the more effective that price level will be in providing support or resistance for future price action.
May 15
Trade closed: target reached



I am a great follower of yours. I presume you have gained absolute mastery on trend of stocks & indices. Just thought of asking you, are you following the principles of " Price action trading by Laurentiu"

Thanks anyways for such an insight.
+14 Reply
@manojsoumyaa, thank you.
I appreciate all your efforts that you are putting in place on the technical analysis front.

But when defining the value area how come you are locating the value by drawing a line between a high and low points in a trend.

Value Area always forms only when we plot Volume on "Y-AXIS" against the price. Then it derives the peoples interest at a particular price points where most of the trading happens. And that means that is the zone where people accepted the price of the asset for that defined period.

Value Area's changes when you change the Timeframe, the longer you go, you will understand the accepted price points by the investors.

You can apply this concept literally to anything in the world, the veggie market near house, the books, cars, land, flats anything.. This is a universal concept.

+2 Reply
HemangiWorlikar Tradepro_MoneyFlow
@Tradepro_MoneyFlow, you are right value area definition by volume profile and i know it very well but, my concept minor differ from it and successful.
HemangiWorlikar HemangiWorlikar
@HemangiWorlikar, kinnari using same as i know.
Tradepro_MoneyFlow HemangiWorlikar
@HemangiWorlikar, Good Luck
+1 Reply
Very Nice explained
+1 Reply
@ashokakbari, trying to do more deeper analysis.
+1 Reply
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