TradingIntermediate#Technical Analysis#Volume
Point of Control (POC)
P
Definition
The price level with the highest traded volume for a particular time period in the volume profile.
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Concept Diagram
Key Takeaways
1
POC is the price level with the highest traded volume in a given time period
2
It represents fair value where the most buyers and sellers agreed on price
3
Price tends to gravitate back to the POC when it moves away from it
4
Volume Profile analysis uses POC to identify high-volume nodes and low-volume nodes
Practical Example
Volume Profile shows the POC at $61,500 for the past week — 3x more BTC traded there than any other level. When price drops to $59,000, traders expect a reversion to the POC as $61,500 is considered fair value.
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Related Terms
Market Structure
Premium & Discount ZonesAreas of price relative to a range. Premium (top 50%) is for selling; Discount (bottom 50%) is for buying.
Market Structure
Order Block (OB)The last candle in the opposite direction before a strong directional expansion, marking institutional entry points.
Trading
VWAP (Volume Weighted Average Price)The average price an asset has traded at throughout the day, based on both volume and price. Used as a benchmark for institutions.
Trading
Candlestick ChartA financial chart used to describe price movements of a security over time, showing Open, High, Low, and Close values.
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