Definition
#Measures how close current price is to the previous complete UTC day's value area, ignoring whether price is below VAL or above VAH.
Formula & calculation
#Use the signed Previous Day Value Area Distance calculation, then apply
abs(signed_distance).Units & range
%. 0 means price is inside yesterday's value area. Higher values mean farther from the nearest value-area boundary.
Interpretation
#This is the simplest closeness filter for value area. It does not say whether price is below or above value; it only measures distance from value.
Practical usage
#Use
lte 0.50 to find coins inside or close to yesterday's value area.Common mistakes
#Frequent interpretation traps and misuse patterns to avoid when applying this metric.
- Using absolute distance when you need to know whether price is below VAL or above VAH.
- Treating inside value as a direction signal. It only identifies location inside prior acceptance.
- Using it without a liquidity floor on thin symbols.