What is Point of Control?
Point of Control (POC) is the price level within a volume profile that shows the highest traded volume during a specific time period. It represents the price where buyers and sellers were most active and found the greatest agreement on fair value.
POC acts as a magnetic level where price often returns, serving as dynamic support or resistance. Understanding POC helps traders identify key price levels where significant trading interest exists and where price reactions are most likely to occur.
Understanding Volume Profile & POC
Volume Profile Basics
How Volume Profile Works:
- • Displays volume traded at each price level horizontally
- • Longer bars indicate higher volume at that price
- • POC is the price with the longest volume bar
- • Shows where most market participants agreed on value
POC Identification:
- • Look for the longest horizontal volume bar
- • Often highlighted by trading platforms
- • Can be calculated for different time periods
- • Updates as new volume data comes in
Types of POC Analysis
Session POC
- • POC for single trading session
- • Most common timeframe used
- • Relevant for intraday trading
- • Updates throughout the day
Composite POC
- • POC across multiple sessions
- • Shows longer-term value area
- • More significant support/resistance
- • Better for swing trading
Sponsored Insight
POC Trading Applications
POC as Support
When Price is Above POC:
- • POC often acts as support level
- • Price tends to bounce off POC
- • Buying interest increases near POC
- • Look for long entries on POC tests
Trading Strategy:
- • Wait for price pullback to POC
- • Look for buying volume increase
- • Enter long with tight stop below POC
- • Target previous highs or next resistance
POC as Resistance
When Price is Below POC:
- • POC often acts as resistance level
- • Price may struggle to break above
- • Selling pressure increases at POC
- • Look for short entries on POC rejections
Trading Strategy:
- • Wait for price rally to POC
- • Look for selling volume increase
- • Enter short with tight stop above POC
- • Target previous lows or next support
POC Breakout Trading
High-Probability Breakout Setups:
Bullish Breakout
- • Strong volume break above POC
- • Previous resistance becomes support
- • Enter on breakout confirmation
- • Stop loss below POC level
Bearish Breakdown
- • Strong volume break below POC
- • Previous support becomes resistance
- • Enter on breakdown confirmation
- • Stop loss above POC level
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Combining POC with Other Analysis
POC + Technical Analysis
Support & Resistance
- • POC often coincides with S/R levels
- • Confluence increases significance
- • Use together for better entries
- • Higher probability trade setups
Moving Averages
- • POC near major moving averages
- • Dynamic support/resistance confluence
- • Trend continuation signals
- • Multiple timeframe analysis
Value Area Analysis
Understanding Value Area:
- • Value Area contains 70% of traded volume
- • POC is typically in the center of Value Area
- • Value Area High (VAH) and Low (VAL) are key levels
- • Price tends to return to Value Area
Trading Applications:
- • Trade reversals at VAH/VAL levels
- • Look for POC tests within Value Area
- • Price outside VA often returns to POC
- • Use VA for position sizing decisions
POC Trading Best Practices
Setup Requirements
Market Conditions
- • Look for established POC levels
- • Sufficient volume for reliable POC
- • Clear price action around POC
- • Avoid choppy, low-volume periods
Timeframe Selection
- • Daily POC for swing trades
- • Session POC for intraday trades
- • Weekly/Monthly POC for position trades
- • Multiple timeframe confirmation
Entry and Exit Rules
Entry Criteria
- • Wait for price to approach POC level
- • Look for volume confirmation
- • Use additional technical signals
- • Confirm with price action patterns
Risk Management
- • Set stops beyond POC with buffer
- • Use POC for position sizing
- • Take profits at key levels
- • Monitor volume for exit signals
Common POC Trading Mistakes
Mistakes to Avoid
Analysis Errors
- • Using POC without volume confirmation
- • Ignoring overall market trend
- • Over-relying on POC alone
- • Not considering timeframe context
Execution Errors
- • Entering too early without confirmation
- • Placing stops too close to POC
- • Not adjusting for volatility
- • Ignoring risk management rules
Key Takeaways
Volume Center: POC represents the price level where most trading activity and volume occurred.
Magnetic Level: Price tends to return to POC as it represents fair value consensus.
Dynamic S/R: POC acts as support when price is above and resistance when price is below.
Confluence Trading: Combine POC with other technical analysis for higher probability setups.
Master Volume Analysis
Learn advanced volume profile techniques and market structure analysis
Related Trading Concepts
Volume Profile
Complete volume distribution analysis showing volume at each price level.
Value Area
Price range containing 70% of traded volume, surrounding the POC.
Market Structure
Analysis of how markets organize and move through key levels.
Support & Resistance
Key price levels that act as barriers to price movement.
Volume Analysis
Using trading volume to confirm price movements and trends.
Auction Theory
Market theory explaining how prices discover fair value through auction process.
Trading Risk Disclaimer
Volume profile analysis and POC trading involve substantial risk of loss. Past performance does not guarantee future results. Volume patterns can change rapidly and may not always act as expected support or resistance. Always use proper risk management, never risk more than you can afford to lose, and consider consulting with qualified financial professionals before implementing any trading strategy.