Recently, I was reviewing my trading notes on volume and came across something many traders overlook: the POC really matters more than most people think.



The Point of Control, or POC, is basically the price level where the most volume traded during a given period. It sounds simple, but when you combine it with serious volume profile analysis, it starts to reveal where the true points of interest are in the market. This is where buyers and sellers actually meet, so it tends to act as pretty solid support or resistance.

What’s interesting is that when you identify the POC on your chart, you get a tool to anticipate moves. I’ve noticed that many reversals happen exactly at these levels. Volume doesn’t lie, right?

Now, if you’re looking for a sell entry using POC trading, here’s what works: first, confirm that the POC lines up with strong resistance. When the price comes near this area, watch to see whether the volume increases. That increase in volume as it approaches the POC often indicates that something is about to bounce or reject that level. I also look for bearish candlestick patterns in that area—like a bearish engulfing (enoshura bajista) or a shooting star (estrella fugaz)—to confirm the entry.

But here’s the important part: market context. Don’t enter a sell just because the POC is there. Make sure the overall sentiment is bearish, and that the trend supports your idea. That’s what makes the difference between a trade that works and one that goes against you.

As for risk management, place your stop loss above the POC or the resistance. That’s essential. And once you’re in the position, monitor closely. Price and volume constantly change, so adjust your take profit and stop loss levels based on what you see in real time. POC trading isn’t a set-and-forget; it requires attention.
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