Basically, the Value Area is the price range where 70% of yesterday's volume traded. The theory being, if you know where this bulk of volume occurred yesterday, you can see if the market is in balance or out of balance today, and trade accordingly.
I've attached the indicator (V6.5 compatible and NT7.0.0.14 compatible), and I'm also attaching the ValueAreaHelpGuide.zip (it's a PDF) that describes its use. The article was written by Larry Levin, but the theory is widely known by professional traders.
It does not work on daily, weekly or monthly bars.
Enjoy!
Ben
NOTE: Enhanced version posted 9/28/09, changes are:
1) Memory allocation limitation removed (will run on any instrument and any daily High to Low price span)
2) Start/stop time can now straddle midnight
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