Naked Points of Control
What they are, how to spot them and how to trade them.
A thread ๐งต
What they are, how to spot them and how to trade them.
A thread ๐งต
What is a PoC?
A Point of Control (PoC) is the level of the Volume Profile where the most volume was traded.
In case you don't know, the Volume Profile shows how much volume was traded at each level during a period of time / market range.
A Point of Control (PoC) is the level of the Volume Profile where the most volume was traded.
In case you don't know, the Volume Profile shows how much volume was traded at each level during a period of time / market range.
What is an nPoC?
Once price exits a Value Area, its PoC becomes a naked PoC (nPoC).
It was once a level where price was balanced, sellers and buyers were equally strong and the most volume was traded at that level, but now price has moved to new levels.
Once price exits a Value Area, its PoC becomes a naked PoC (nPoC).
It was once a level where price was balanced, sellers and buyers were equally strong and the most volume was traded at that level, but now price has moved to new levels.
Why are they important?
It was once a level where buyers and sellers were equally strong, so now price will move until it reaches the same balance again and the other side of the market starts getting involved.
Because of this, an nPoC is a level where strong moves stop.
It was once a level where buyers and sellers were equally strong, so now price will move until it reaches the same balance again and the other side of the market starts getting involved.
Because of this, an nPoC is a level where strong moves stop.
Why does price bounce from an nPoC?
Because the most volume was traded at that level, you have a lot of people that entered a position there and now have limits at their break-even price.
This is why an nPoC holds liquidity and once liquidity is swept, the price reverses.
Because the most volume was traded at that level, you have a lot of people that entered a position there and now have limits at their break-even price.
This is why an nPoC holds liquidity and once liquidity is swept, the price reverses.
How to spot them?
The easiest way to spot an nPoC is to use the Periodic Volume Profile indicator. This shows you the daily Volume Profiles which will leave a lot of nPoCs from previous days.
You can also use nPoCs from the Volume Profile of ranges, sessions, weeks, hours...
The easiest way to spot an nPoC is to use the Periodic Volume Profile indicator. This shows you the daily Volume Profiles which will leave a lot of nPoCs from previous days.
You can also use nPoCs from the Volume Profile of ranges, sessions, weeks, hours...
How to trade an nPoC?
You can use nPoC as entries or TPs for your trades as they are acting as a draw for the price.
However, do not use them alone, use them in confluence with other liquidity targets (FVGs, OBs, highs / lows) and after a certain entry model appears.
You can use nPoC as entries or TPs for your trades as they are acting as a draw for the price.
However, do not use them alone, use them in confluence with other liquidity targets (FVGs, OBs, highs / lows) and after a certain entry model appears.
If you enjoyed this thread, feel free to like and repost it so that it helps out more people โค๏ธ
Give the nPoC a try and implement it into your trading style and if you have any questions, DM me.
As always, you can find more educational content from me in @Chroma_Trading ๐
Give the nPoC a try and implement it into your trading style and if you have any questions, DM me.
As always, you can find more educational content from me in @Chroma_Trading ๐
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