Chapter 2
What is POC (Point of Control)?
Highest volume price level: the market's fair value consensus
What is POC (Point of Control)?
Point of Control (POC) is the price level with the highest trading volume in the volume profile. This level represents the "fair value" point where buyers and sellers reached the most agreement within a given timeframe. POC is one of the most commonly watched reference levels.
Why does POC (Point of Control) matter?
POC acts as the market's equilibrium point. Price slows when approaching POC because of dense two-sided trading activity. Trading above POC indicates an upward bias, while trading below indicates a downward bias.
How does POC (Point of Control) appear in the CloudCraft terminal?
A separate POC line is drawn on the chart for each period (PW, PD, PM). PW-POC, representing a week-long volume consensus, is a reference level reflecting a broader timeframe.
How to use POC (Point of Control)?
Mean Reversion: When price moves away from POC, trades can be taken toward POC expecting a return. Especially effective in ranging markets.
Trend Confirmation: In an uptrend, the position is held as long as price stays above PW-POC. Close below POC = trend weakening.
Trend Confirmation: In an uptrend, the position is held as long as price stays above PW-POC. Close below POC = trend weakening.
This content is for education and analysis only, not investment advice. Market tools offer probability and context, not certainty; the decision is the user responsibility.