I just realized that many new traders often feel confused about what POI is, so today I decided to share a clearer explanation. Basically, POI stands for Điểm Quan Tâm (Point of Interest)—these are the areas on the chart where the price is likely to turn back or interact strongly. So what exactly is POI? It’s a zone defined based on prior unusual price movements, such as candles with long wicks, liquidity gaps, or points that indicate fake breakouts.



I usually call POI a “price magnet” because it really has pull. When the price creates a massive candle with high volume, or a clearly rejecting candle, or strong supply and demand zones—those can all be potential POIs. The most common types of POIs that I track are breakout candles (when a strong bullish or bearish candle appears with large volume), rejection candles with clearly long shadows, and imbalance zones—areas where the price has interacted many times already.

So what is POI and how can I use it? It’s actually very simple. First, wait for the price to revisit that POI, then watch for reversal signals. Second, place the stop loss accurately below or above the POI by about 10–15 points. Third, combine it with other indicators—for example, if the price is near the POI and RSI is at 70, that’s a strong selling opportunity. Fourth, determine your target at the next resistance level or at prior peaks and valleys.

Let’s take XRP as an example. Suppose that on the 15-minute timeframe, a huge bullish candle appears, rising from 1.9500 to 2.0000 within one minute. Then you know the POI is in the 1.9500–1.9600 zone. After that, when the price comes back to this zone, you need to watch whether there’s strong interaction. If a hammer candle appears at 1.9550, it could be a sign that traders are showing interest and that a rebound is possible. At that point, you might expect the price to try to rise back to 2.0000, with a stop loss at 1.9450.

The important thing is to combine POI with other tools. First, identify the market trend—POI should support the trend, not go against it. EMA 50/200 is also helpful: if the POI is above the moving averages, it acts as support. Volume is also very important—rebounding from the POI with strong volume provides additional confirmation.

But I also want to remind you of some common mistakes. Don’t enter a trade before there’s clear confirmation. Don’t ignore the overall trend just because of the POI. Always manage risk—don’t rely solely on POI and skip the stop loss. And one more thing: what POI is depends on the timeframe you’re using. I recommend using the 15-minute chart for scalping, or higher timeframes for swing trading. Understanding what POI is and how to apply it will help you trade much more effectively.
XRP1.94%
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