Open and value area

IndicatorsFrom Trader

• Price
• Open
• High
• Low
• Volume

Open and value area

value area previous day · 2 candles

• Open above
• Open inside
• Open below
• 80 % rule
• Target reached
• Open
• Target

This is how the node looks on the board: inputs on the left, outputs on the right.

Like the first step out of the front door: where a session opens shows whether the market starts in yesterday’s familiar territory or outside it. Coming back in, it often crosses the whole value area.

Open against the value area, 80 % rule. Checks where a session opens: above the value area of the session before, inside it or below it. The position holds for the whole session. If the price opens outside and two candles in a row then close inside the value area, “80 % rule” reports: according to a well-known rule of thumb from market profile, the price then often runs to the other edge. “Target reached” reports when it gets there, “Target” gives the edge. In the sample prices on hourly candles, BTC got there in 12 of 33 cases, ETH in 13 of 20: a rule of thumb, not a certainty. Example: “80 % rule” to Telegram reports when BTC opens above yesterday’s value area and then closes inside it two hours in a row.

What it looks like

• VAH and VAL previous day
• Open, green above, red below
• 80 % rule and target
• Position of the open

Five days of BTC/USDT on 1-hour candles with the VAH and VAL of each previous day. When a day opens outside and two candles in a row then close inside again, the 80 % rule applies (“80 %”); “target” marks where the price reaches the other edge. Not every rule gets there: a rule of thumb, not a certainty.

Setting it in the chart

In the properties, a chart shows the last 150 candles with the VAH and VAL of each previous day. A dot marks each day’s open, green above, red below, grey inside; “80 %” sits where the rule applies, “target” where the price reaches the other edge. The top line shows how often the rule applied in the chart and how often the target was reached.

More under Chart above the price.

Settings

The settings appear on the right under “Properties” once you click the node on the board. Below each field you find the same explanation as here.

Period

Default: day

How long a session is: one day, one week from Monday or one calendar month.

• day (default): One session per calendar day. Most accurate with candles from 15 minutes to 1 hour.
• week: One session per calendar week, Monday to Sunday. Suits 1-hour and 4-hour candles.
• month: One session per calendar month. Suits 4-hour and daily candles.

Candles in value area

Default: 2 · from 1 to 20, whole number

How many candles in a row must close inside the value area after an open outside before the 80 % rule applies. The classic rule takes two half hours; with 30-minute candles that is 2, with 15-minute candles 4.

Value area

Default: 70 % · from 50 to 95 % · under “More”

Which share of the volume lies inside the value area. 70 % is usual; more makes it wider, less tighter around the POC.

Price levels

Default: 50 · from 10 to 200, whole number · under “More”

How many levels of equal height the session’s range is split into. With 50, one level is 0.05 % high at a 2.5 % daily range; more levels rarely add accuracy because the candles themselves are coarse.

Time zone

Default: UTC · IANA time zone such as Europe/Berlin, at most 64 characters · under “More”

The time zone in which the day, week and month begin. The default is UTC, like the exchanges’ daily candles; in Berlin that is 1:00 AM in winter and 2:00 AM in summer. With Europe/Berlin the day begins at midnight German time.

Example

When BTC opens outside yesterday’s value area and then closes back inside it two hours in a row, Telegram notifies you: by the 80 % rule the price often runs to the other edge.

How to connect the nodes:

1. Candle (Price) → Open and value area (Price)
2. Candle (Open) → Open and value area (Open)
3. Candle (High) → Open and value area (High)
4. Candle (Low) → Open and value area (Low)
5. Candle (Volume) → Open and value area (Volume)
6. Open and value area (80 % rule) → Telegram (Trigger)

On the board it reads: value area previous day · 2 candles

Chain as JSON

To try it, copy it and paste it in the editor under “Import”. Importing creates a new chain.

open-value.json

{
  "name": "Example: Open and value area",
  "version": 1,
  "nodes": [
    { "id": "c1", "type": "core.candle", "position": { "x": 40, "y": 40 }, "settings": { "pair": "BTC/USDT", "timeframe": "1h" } },
    { "id": "o1", "type": "core.open-value", "position": { "x": 260, "y": 40 }, "settings": {} },
    { "id": "t1", "type": "core.telegram", "position": { "x": 480, "y": 40 }, "settings": {} }
  ],
  "edges": [
    { "from": "c1.close", "to": "o1.close" },
    { "from": "c1.open", "to": "o1.open" },
    { "from": "c1.high", "to": "o1.high" },
    { "from": "c1.low", "to": "o1.low" },
    { "from": "c1.volume", "to": "o1.volume" },
    { "from": "o1.accepted", "to": "t1.in" }
  ]
}

Inputs and outputs

Only matching types connect: number series to number series (round pin), signal to signal (square), message to message (diamond).

Direction	Pin	Type	Note
Input	Price	Number series	required
Input	Open	Number series	required
Input	High	Number series	required
Input	Low	Number series	required
Input	Volume	Number series	required
Output	Open above	Signal (true/false)	–
Output	Open inside	Signal (true/false)	–
Output	Open below	Signal (true/false)	–
Output	80 % rule	Signal (true/false)	–
Output	Target reached	Signal (true/false)	–
Output	Open	Number series	appears in messages as a price, e.g. “$81,616”
Output	Target	Number series	appears in messages as a price, e.g. “$81,616”

Good to know

• In messages the values are called “session open”, “80 % rule target”.
• Warm-up with the default settings: 48 candles (this many extra candles are loaded by the replay before the value is reliable).
• Search also finds it under: open, opening, value area, 80 percent rule, 80 % rule, eighty percent rule, market profile, open outside value, prior day.

Technical details

Value area of the session before as in the Volume profile node, the open is that of the session’s first candle. Above: open above VAH, below: below VAL, otherwise inside. 80 % rule: open outside, then “Candles in value area” closes in a row with VAL ≤ close ≤ VAH, the session’s first candle included; true on the candle that completes the run, once per session. The target is VAL after an open above, VAH after an open below; “target reached” is, from the rule’s candle on, the first one with low ≤ VAL or high ≥ VAH.

• Type in the chain: core.open-value · Version 1.0.0 · Category key ind
• Settings in the chain: period (Period), bars (Candles in value area), valueArea (Value area), rows (Price levels), timezone (Time zone)
• Pins in the chain: Input close, open, high, low, volume · Output above, inside, below, accepted, reached, open, target
• Reference tests in the manifest: 1 (with fixed price data: 500 candles of 1h)
• How a node is built