Recently, while reviewing the chart, more and more people have been mentioning a term: poi. In fact, it means “point of interest,” referring to specific areas on the chart that traders are paying close attention to. You’ll find that every time the price comes to this area, there is strong interaction—possibly a bounce, possibly a breakout, possibly liquidity absorption.

So how do you identify poi? Put simply, it’s about finding the traces left behind by “abnormal” price movements. For example, a huge candle with a long wick, a sudden price gap, a pullback after a false breakout, or those clearly defined zones where supply and demand accumulate. Even a market maker’s entry point counts. poi is like a magnet for price—it gets revisited again and again.

I categorize the common types of poi into a few categories. Breakout candles are the most direct—when you see a strong candle accompanied by huge trading volume, that indicates real liquidity entering, making it a poi naturally. Rejection candles are also very obvious, such as hammer or shooting star candles with long wicks, where the price is clearly rejected there. There are also liquidity gap areas—prices interact frequently in these places, and sooner or later, they will come back. Finally, there are supply and demand zones, where buy and sell orders are concentrated.

How do you profit from poi? My approach is to first wait for the price to revisit the poi while also watching for reversal signals—reversal candles or breaks of price structure are worth paying attention to. Set the stop-loss precisely, usually 10 to 15 points above or below the poi. Combining indicators is more reliable—for instance, when the price is approaching the poi and the RSI is already at 70 (the overbought zone), that’s a good selling opportunity. As for target levels, you can set them at the next resistance level or at the previous high or low.

Let’s take XRP as an example. Suppose that on the 15-minute chart, a huge bullish candle appears, pushing the price from 1.9500 to 2.0000 within one minute. Then the 1.9500 to 1.9600 area is the poi—a clear starting point. Two hours later, when the price returns to this area, it’s worth watching for potential interaction. If a reversal candle like a hammer appears at 1.9550, that’s a signal that traders are interested in this zone and may suggest a bounce. In this situation, technical analysts might expect the price to surge again toward the 2.0000 high, with a downside risk level around 1.9450. (Reminder: this is just a teaching example and does not constitute trading advice.)

Using poi alone isn’t enough—you need to pair it with other tools. First, look at the market structure to confirm whether the overall trend is up or down, so poi can work for you rather than against your position. EMA 50 and 200 are also crucial: if the poi is above the moving averages, it acts as support; if it’s below, it acts as resistance. Don’t ignore volume either—when a bounce from the poi is accompanied by high trading volume, that’s an additional confirmation signal.

Let me also share some pitfalls I’ve encountered. The most common one is entering without waiting for confirmation, only to get shaken out. Others fixate only on poi and completely ignore the overall trend direction—that’s the biggest reason people lose money. Relying on poi without risk management is also a big no-no. One more thing: choose the right timeframe—poi works best on the 15-minute chart for short-term trading; if you switch to the daily chart, it may not be as effective.