I’ve been thinking about something that many traders overlook when analyzing charts: POIs, or points of interest. Basically, they’re specific zones where the price tends to react strongly. It could be a bounce, a breakout, or simply where real liquidity comes in. Most beginners don’t know how to identify them, and honestly, it’s the difference between trading chaos and having a plan.

POIs form from anomalous price movements. Think of a huge candle with long wicks, or a price gap that remained unfilled, or those false breakouts that fool everyone. There are also levels where a lot of demand or supply accumulates. The point is that price is like a magnet: it always returns to these places. That’s why POI trading makes so much sense when you understand it well.

The most common types I see in my analysis are explosion candles—those where you see massive volume pushing the price in one direction. Then there are rejection candles, with long wicks that tell you there was real rejection. There are also imbalances—those liquidity gaps that the market eventually fills. And of course, there are the supply and demand zones where dense orders are concentrated.

Now, how do you use this to make money? First, you wait for the price to return to the POI. When it does, you watch for reversal signals: a hammer candle, a clear rejection, something that confirms that something is about to happen. Then you place your stop loss 10 to 15 points below or above the level, depending on your direction. POI trading becomes more powerful when you combine it with indicators. If the price touches your POI and the RSI is at 70, you have a very strong selling opportunity. For targets, you simply aim for the next resistance or the previous highs and lows.

Let me give you a real example. Imagine you’re on a 15-minute chart and you see a huge upward candle that rises from 1.9500 to 2.0000 in one minute on XRP. That marks a clear POI in the 1.9500-1.9600 zone. Hours later, when the price returns to that area, you know something is going to happen. If a hammer candle appears at 1.9550, it’s a sign of real buyer interest. From there, you can anticipate a move back toward 2.0000 again, and your risk is defined below 1.9450. POI trading in action is exactly this: identify, wait for confirmation, and execute with controlled risk.

But don’t do this on its own. Combine POI with market structure; check whether you’re in an uptrend or a downtrend. Use EMA 50 and 200 to determine whether the level is support or resistance. Watch the volume—if you get a bounce from the POI with high volume, that’s additional confirmation that something important is happening.

The mistakes I constantly see: entering before there’s confirmation, ignoring the market’s overall trend, and relying on POI without proper risk management. Oh, and using POIs on very high timeframes if you want to scalp. It works much better on 15 minutes.

This is a solid tool if you respect it. It’s not magic, but when you see how the price keeps returning to these levels, you understand why POI trading is so relevant in serious technical analysis.