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.
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.