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POC

Flawed concepts: the way they sell volume & market profilesImagine daily profiles put on each day on the chart, and let the words in purple provoke some fruitful doubts in your mind. The presented and advertised way of using volume & market profiles is essentially a way of approximating the real levels. This way is very bad. 1) The most fundamental and very obvious flaw is that it disregards the sequence of events. You can take a chart, reshuffle bars in order, or lol, just invert it horizontally. and you'll end up with different charts that have the same profile. All good bro? It's time series lol, sequence does matter. That's why you can't use profiles and non-weighted stats unless you have a very specific goal; 2) 70% rule, normal distributions & standard deviations have nothing to do with aggregated tick data. As a process, it can all can be modeled as a morphing distribution, a constant fight between normal and uniform distributions, the double auction dynamic distribution. But yeah, ofc course you can't read it in a book, gotta think for yourself a lil aye? In normal distribution 70% make sense, in the uniform one it makes sense to consider 100% (the whole distribution) as the area of interest. So overall it's somewhere in between 70 and 100. Also, confirmed with my R&D, bots give the best performance when a price channel includes 80-90% of data (mostly 80), best metrics converge around this number; The real way to use profiles is when you consciously need to disregard an order of events within a certain period and have some kind of summary of it. It's applicable when a certain period has some distinguishable significance: when levels are formed, positioned and cleared. There, you are not really interested in order of things within these events, rather in summaries of these events, there you're doing the right thing. Otherwise, POCs of 'every' period doesn't have equal significance. Summarizing volumes within a week/day/months etc, making a profile & taking 70% so you gonna get VAHs and VALs of it won't magically calculate you the real levels, only approximate em, but 4 real there are better and less computationally intensive ways of doing it, just get a box plot with 10th and 90th percentiles. This video might be really mind opening for you, I really respect it & its creator. If you wanna know how to find levels 4 real, check the linked ideas & use it with pleasure.
NYMEX:CL1!Education
by gorx1
🔥🚩POINT OF CONTROL: THE MOST USEFUL TOOL FOR TREND TRADER🔥 Hi friends! Point of control is a part of volume profile indicator and very useful tool to identify upcoming BTC or any other asset move. I will explain you how to use this tool in your trading and make a good profit in this idea. 💹 Horizontal Volume Indicator or Volume Profile is a simple indicator that helps to identify: value areas (support or resistance zones), points of control and liquidity gaps. 📊 HOW TO USE POINT OF CONTROL Point of control (red line on the chart) is the place of the largest accumulation of liquidity. We can say that this is the place of "the biggest battle between bulls and bears": 🔥the point of control becomes a resistance in case of "bears' victory" and crypto start to fall 🔥the point of control becomes a support in case of "bulls' victory and crypto start to grow 🚩 When one of the sides wins the "battle", this is the best time to enter the trade in short or long. ✅ No matter how complicated this tool looks, it is very easy to use: 1. extend the volume profile indicator from the lows to the highs. The indicator automatically shows the largest accumulation of liquidity showing POC (red line). 2. wait until the price tests the POC as support or resistance . From time to time the price can consolidate directly on the POC, which indicates the "battle" of long and short traders. Pay attention to the chart. I have selected for you 4 cases of using POC on the volume profile: 1. Bitcoin just touched the POC at $39,700 and bounced up 72%. 2. the price tested the POC as resistance at $61,100 after which the price fell by 45% from the absolute highs. 3. Bitcoin consolidated around the POC at $39,000 for some time. The price fell by 31%. 4. POC is at the price of $19,150 per Bitcoin. Now you have to expect the price to return to this level and carefully watch the price reaction on POC. 🔥If the POC is tested as resistance , then it is very likely that we will see the level of $13,000-14,000 for BTC. 🔥If the POC is tested successfully as support , then the price will be able to make higher highs and start a bullish trend for Bitcoin. I talked about this scenario in previous ideas. 🚩 HOW TO ADD VOLUME PROFILE INDICATOR WITH POC TO YOUR CHART? 3 steps to add the indicator to your chart: 1. open "prediction and measurement tools" at the left part of chart 2. choose the "Fixed Range Volume Profile" 3. choose the price range from some date till another date. So now you can see all important value areas and point of control. ✅ Point of control help you to identify the power of bulls or bears on different timeframes and make the right trading decision in the most of cases. Personally, I use this tool effectively for swing trading and scalping as well. Traders, do use this indicator and such tools as POC in your trading? What is your favorite idicator for trading? Let me know in the comments. 💻Friends, press the "boost"🚀 button, write comments and share with your friends - it will be the best THANK YOU. P.S. Personally, I open an entry if the price shows it according to my strategy. Always do your analysis before making a trade.
Education
by Yuriy_Bishko
7
How to trade using Value Areas and POC?A few key concepts when using Market Profile in your trading: 1) Point of Control (POC) acts as price magnets, as they represent the price level where most time was spent during a trading day. Price tends to gravitate towards them. 2) Naked (Not visited) POC acts as stronger magnets than visited POCs. 3) When price enters / breaks into a Value Area, which represents a range of "fair value", price tends to visit the other end of the Value Area. For example above, the price breaks up from the Value Area Low before end of day yesterday, hit the Value Area High this morning. You definitely won't find these key levels and ranges with traditional support and resistance lines drawing methods. Using Market Profile will give you the edge to become a better trader. See my previous 2 posts:
OANDA:SPX500USDEducation
by PtGambler
2
SPX hitting huge excess area, which way will it go next?As you can see, the price is sitting in a large excess range, trying to push higher with the bullish momentum since the opening. Looks like it is feeling lots of selling pressure. But if we can break up and into the higher naked value area, there is great opportunity for a bull run to the value area high. Otherwise, we might go back to the value area from yesterday's price action. What's your take?? Will we go up or down?
SP:SPX
by PtGambler
EURJPY – SHORTThe possibility of selling from the Major Resistance Level and Supply Zone. Sell on a false breakout! The target is POC level in Demand Zone. EURJPY – SHORT ENTRY PRICE - 146.550 SL - 148.000 TP - 142.200 Always follow the 6 Golden Rules of Money Management: 1. Protect your gains and never enter into a position without setting a stop loss. 2. Always trade with a Risk-Reward Ratio of 1 to 1.5 or better. 3. Never over-leverage your account. 4. Accept your losses, move on to the next trade and trust the software. 5. Make realistic goals that can be achieved within reason. 6. Always trade with money you can afford to lose. Please leave your comment and support me with like if you agree with my idea. If you have a different view, please also share with me your idea in the comments. Have a nice day!
Short
by Profit_Trader
1
WTI Crude Oil headed for 96?Following a 3-day pullback from 93.64, WTI produced a bullish engulfing candle on the daily chart which closed back above the 20-day EMA. Given the strength of the rally from the 76.30 low, we suspect a corrective low has been found. The 4-hour chart shows that there was a lot of trading activity around 87.60 since the September low (which marks the volume POC / point of control). But also note that yesterday's low held above a previous bullish engulfing candle on the 4-hour chart, rebounded above the 200-bar EMA and a bullish engulfing candle closed firmly above trend resistance. Prices are pulling back in Asia so we're now looking for opportunities to enter long above the 88.0 area / monthly R1 pivot point, and anticipate prices to retest the 94 highs and head for 96 - or even the high around 97.66.
NYMEX:CL1!Long
by CityIndex
BTCUSDT Swing Short Targets 20900, 20200, Naked POCsSwing shorts to 20900 and 20200 are a very good bet. These are NPOCs from July 5, 6, and 7. It is rare when the price does not return to a previous POCs, so they are very good targets. POCs from HTFs (higher timeframes) are especially good targets because the higher time means more volume during that time period than LTFs (lower time frames) The volume at a POC is too significant for traders to not bring the price back to it. Until the price the returns to that POC, the POC is naked. On Bybit's BTCUSDT perp market, the daily POCs from July 5, 6, and 7 are naked on a 1 tick bid/ask profile chart. The POCs are 20900 : July 7 20200: July 5 AND July 6 POCs (naked and virgin) POCs are points of control. They are prices that had the highest volume during a time period. The high volume at that price means traders are strongly motivated to bring the price back to that POC value. After a time period has closed, until the price returns to the POC of that period, in the jargon of order flow trading, the POC is called a naked or a virgin POC.
Short
by UnknownUnicorn17032407
LINKUSDT map for a potential downtrendThat's my ultimate speculative map for a potential downtrend anatomy for LINKUSDT. We have a reversal Head and Shoulders top in formation, which a pullback to neckline can occurs in a retest of broken dynamic trendline. If the price remains bearish, a test of the volume point of control POC can be expected. Then a potential downtrend in a parallel channel formation can be expected w/ lower highs retesting the dynamic trendline / resistance. The final target is the D point from prior Butterfly pattern.
Short
by firmestudio
AUDUSD – LONGBuying opportunity from Major Support Level and Demand Zone . Buy on a false breakout! The target is next POC level in Supply Zone. AUDUSD – LONG ENTRY PRICE - 0.67400 SL - 0.66700 TP - 0.69550 Always follow the 6 Golden Rules of Money Management: 1. Protect your gains and never enter into a position without setting a stop loss. 2. Always trade with a Risk-Reward Ratio of 1 to 1.5 or better. 3. Never over-leverage your account. 4. Accept your losses, move on to the next trade and trust the software. 5. Make realistic goals that can be achieved within reason. 6. Always trade with money you can afford to lose. Please leave your comment and support me with like if you agree with my idea. If you have a different view, please also share with me your idea in the comments. Have a nice day!
Long
by Profit_Trader
GBPUSD - LONGConsider the formation of North Impulse from Major Resistance Level. Buy on a false breakout! The target is next Supply Zone. GBPUSD - LONG ENTRY PRICE - 1.14450 SL - 1.13700 TP - 1.18000 Always follow the 6 Golden Rules of Money Management: 1. Protect your gains and never enter into a position without setting a stop loss. 2. Always trade with a Risk-Reward Ratio of 1 to 1.5 or better. 3. Never over-leverage your account. 4. Accept your losses, move on to the next trade and trust the software. 5. Make realistic goals that can be achieved within reason. 6. Always trade with money you can afford to lose. Please leave your comment and support me with like if you agree with my idea. If you have a different view, please also share with me your idea in the comments. Have a nice day!
Long
by Profit_Trader
Liquidity overviewEURUSD H1 You can clearly see the Point of Control in volume profile, in that specific zone there is avoid of liquidity (asa IMBALANCE) and that zone will attract the price because big players will have to mitigate their trades. Anyway we see that price is trading in a narrow range now, we should wait a potential breakout and the close of a H1 candle above the rsistance before placing a buy, if instead price goes down we will stay out of market. The Italian Trader
by Dragon_Investments