Recently, I’ve been looking at discussions in trading communities and found that many people are talking about a concept called POI, which actually stands for "Point of Interest" — simply put, those are the areas on the chart where prices tend to repeatedly interact. I’ve used it for a while myself, and it’s quite practical.

What is POI? It’s essentially an area identified based on past abnormal price movements. For example, you might see a huge candle with long wicks, or a price gap, false breakouts, or strong supply and demand zones — these can all form POIs. Traders generally think of POI as a magnet for price, often revisited again and again, whether for rebounds or breakouts.

The most common types of POI include several. Breakout candles are when you see strong upward or downward moves accompanied by massive trading volume, indicating genuine liquidity entering — thus considered POI. Rejection candles are those with long wicks, showing clear price rejection — like hammer candles or shooting stars. There are also liquidity gap zones, where price interacts more frequently and often revisits. Lastly, supply and demand zones contain large buy or sell orders.

How can you benefit from POI? First, you need to identify the ideal entry zone — wait for the price to return to the POI, then observe reversal signals, such as reversal candles or breakouts of price structure. Setting stop-losses is crucial, usually 10-15 points below or above the POI. My approach is to combine POI with other indicators; for example, when the price approaches a POI and RSI is at 70 (overbought), that’s a strong sell signal. Target setting should also be precise — when entering a trade from a POI, you can set your target at the next resistance level or previous high/low.

Let me give an example. Suppose you see a huge bullish candle on a 15-minute chart, pushing the price from $1.9500 to $2.0000 within a minute — this indicates a POI around the $1.9500 to $1.9600 zone, a clear starting point. Later, if the price revisits this zone, say after two hours, you can consider it a potential interaction area. If a reversal candle like a hammer appears at $1.9550, that’s a signal that traders are interested in this zone. Technical analysts can predict the price might attempt to rise again to $2.0000, while also considering volatility risks below the zone, like at $1.9450.

To make POI truly effective, it should be combined with other analysis tools. Market structure is important — determine whether the trend is bullish or bearish, so POI works in your favor rather than against you. EMA 50 and 200 are also helpful; if the POI is above the moving averages, it acts as support, and vice versa. Volume is another confirmation — a bounce from POI accompanied by high volume adds extra confirmation.

Finally, a few common pitfalls to watch out for. Don’t enter before confirmation appears; ignore the overall market trend; and never rely solely on POI without proper risk management. Also, choose the right timeframe — I recommend trading on the 15-minute chart for short-term trades, as POI signals tend to be clearer there. Honestly, mastering the POI method requires practice and patience, but once you get the hang of it, it can really help you find more precise trading opportunities.