If the price goes downwards from POC, then the heavy volumes were strong sellers. If the price goes upwards from POC, then the heavy volumes accumulated there were hidden volumes of strong buyers. In other words – you look for a POC (that’s the area where they accumulated their positions) and then you want to see the price go upwards or downwards from it. They most often enter their trades in a rotation (in volume accumulation area) and from there they start a trend.
They operate with insane amounts of money and it takes time to enter their trades. In fact, POC is that important, that I base most of my trading strategies around it!īut why does the price react to POC? Why does the POC work as a Support/Resistance zone?īig trading institutions can’t enter their trading positions like we do by simply clicking one button. That’s why it is so important to know where the POC is. The bottom line is: POC is the place where the BIG guys who move and manipulate prices placed most of their positions. That means those guys will always stand out on the Volume Profile. The cool thing about all this is that those institutions will never be able to hide from us. POC is the place where they placed most of their positions. The only thing you need to do is to get the Volume Profile indicator which will show you the POC. It would be a huge advantage to know where they placed most of their positions, right? The good news is that WE HAVE THAT ADVANTAGE!
It is those BIG guys who move and manipulate the markets. Who accumulates those huge trading positions? The BIG guys – that’s the big financial institutions like hedge funds, pension funds, huge banks, etc… Point Of Control is so important because it shows the place where the most trading took place – where the biggest trading positions were accumulated. Why do I say this? Why is POC so important? No matter what trading strategy you trade. I dare say that if you used Volume Profile only for the purpose of identifying the POC, you would be a way better and trader then 99% of the retail traders.
The most important thing that the Volume Profile indicator shows is the POC. DEFINITION: Point Of Control (= POC) is a price level at which the heaviest volumes were traded.
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