The ValueArea Indicator provides an automated band representing the volume-weighted value area. The ValueArea bands represent the prices between which a certain percent of the volume was traded.

Market Signals

Value area technical indicator is a mean reversion indicator interpreted similar to the Bollinger. In other words, short as the price is above the upper band and buy as it is below the lower band.

Calculation

Where V – volume, C – close price, X – multiplier factor, n – period.

Chart Example

Implementation and Usage

To initialize ValueArea indicator use one of the constructors provided:

ValueArea – sets default values: period = 14, factor = 1

ValueArea(Int32, Double) – sets values for period and factor

Use

MiddleBand

UpperBand

LowerBand

properties to get current value

Example

Copy

 1// Create new instance
 2ValueArea va = new ValueArea(28, 2);
 3
 4// Number of stored values
 5va.HistoryCapacity = 2;
 6
 7// Add new data point
 8va.Add(Bars.Current.Open, Bars.Current.High, Bars.Current.Low, Bars.Current.Close, Bars.Current.Volume);
 9
10// Get indicator value
11double IndMiddleBand = va.MiddleBand;
12double IndUpperBand = va.UpperBand;
13double IndLoweBand = va.LowerBand;
14// Get previous values
15if (va.HistoryCount == 2)
16{
17    double IndPrevMiddleBand = va[1].MiddleBand;
18    double IndPrevUpperBand = va[1].UpperBand;
19    double IndPrevLoweBand = va[1].LowerBand;
20}