POC and VA

[hegh]

hello,

to calculate the VA, we first calculate the POC.
Therefore, the POC is still within the VA. But it is possible, POC = VA_h or POC) VA_b.

The question is:

Is it possible that the POC is outside of VA. POC> VA_h or POC <VA_b.
I think not, but maybe I'm wrong.

adrien

[suriNotes]

Hi adrien,

I have seen VAH or VAL equal to POC. As you said, I compute POC first and then the ValueArea (from the TPO distribution). I have never really seen POC outside of
the VAH or VAL.

Here I plotted just POC (Magenta) and VAH and VAL values (Black) on @ES.D.



Regards,
Suri

[zdo]

'Calculated' POC is always inside a VA.
Actual POC... different story

[i trade]

Originally Posted by hegh hello, to calculate the VA, we first calculate the POC. Therefore, the POC is still within the VA. But it is possible, POC = VA_h or POC) VA_b. The question is: Is it possible that the POC is outside of VA. POC> VA_h or POC <VA_b. I think not, but maybe I'm wrong. adrien

POC being the most widely accepted point of value is alway encompassed by the value area. It can be toward the top, bottom or right smack in the middle.

[hegh]

thank you for answers.

I conclude therefore that the POC can not be outside of VA.

[BlowFish]

Originally Posted by i trade POC being the most widely accepted point of value is alway encompassed by the value area. It can be toward the top, bottom or right smack in the middle.

Arguably the VWAP or Volume 'POC' are but that's a discussion for another place and another time.

[i trade]

For intra day value on the ES, esp for scalping purposes, I use vwap and the 1st stand dev as a dynamic value area so in that case VWAP is contained within value.

As far as daily or weekly profiles based on volume or TPO's, I'll have to slap a vwap on them and see but having vwap outside of value is hard to conceive.

Since the range on ES has been lacking I've been much more active trading currencies. With currencies I look at tpo profiles alongside volume profiles and the poc in either case is always contained.

[ongej]

Just to add one thing here, its useful to note the differences between VWAP and volume poc, they can coincide, but are not the same mathematically. vwap is essentially the mean of the volume distribution. The vpoc is the mode, which is the highest bin in the volume histogram or most frequent volume. In a biased distribution, or non-gaussian distribution, they may not be the same.

But to answer the traditional poc,va, the value area is calculated starting with the poc, and then going up and down from it, so yes, the poc will for sure be within the value area

[BlowFish]

Originally Posted by i trade For intra day value on the ES, esp for scalping purposes, I use vwap and the 1st stand dev as a dynamic value area so in that case VWAP is contained within value. As far as daily or weekly profiles based on volume or TPO's, I'll have to slap a vwap on them and see but having vwap outside of value is hard to conceive. Since the range on ES has been lacking I've been much more active trading currencies. With currencies I look at tpo profiles alongside volume profiles and the poc in either case is always contained.

MP guys seem to fall into one of two camps, the purists who would not dream of anything but a profile chart made up of 30min TPO's and the young maverick that use *gasp* volume *shock* and other new fangled thangs. Glad your a maverick

[hegh]

Personally, I use both methods, MP and VWAP.
The two distinct ways.
The MP Classic (daily and weekly, 30 mn) and the VWAP (without MP or ValueArea), daily, 1 days and 4 days.
That is all that is on my graphics, nothing else, is quite sufficient