To check this out, I've looked through the data from the ER2 market, using 1-minute bars between 8:30 and 15:15, on Dec 27th and verified two valid instances where the POC was below the lower end of the Value Area:
1) Using the VOC (Volume on close) method, the POC is always going to be the close of the bar that had the highest volume. That bar occurred at 15:01pm on Dec27 at a price of 779.2. But the statistical deviation of the volume at close prices did put the Volume Area Low price at only 780.6. In this instance, a volume spike in 1 bar, outside of the statistical averages, was not enough to sway the average price and the standard deviation. That will happen from time to time.
2) Using the VWTPO, a similar result occurred on Dec 27...a spike of TPO and volume happened around the low of the day, but the statistical average was still high and the standard deviation not large enough to encompass the POC level.
Perhaps the Tradestation charts are using the TPO method which ignores volume completely. That profile type seems to ensure the POC will be inside the value area. Let me know if Tradestation calculates their profile this way.
Ben
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