I noticed that many traders overlook a truly powerful tool: the POC, or Point of Control. It has become a central part of my trading strategy, and I want to share how to use it effectively.

Basically, the POC represents the price level where the highest volume was traded during a given period. Think of it as a major area of interest where buyers and sellers have really converged. That's where liquidity is concentrated, and this is precisely what makes it an extremely strong support or resistance zone.

What really changed the game for me was combining the POC with volume analysis. When you overlay a volume profile on your chart, the POC becomes clearly visible, often marked by a line or a highlighted zone. The volume indicator shows you the conviction behind each price movement. If you see a volume spike at the POC, it gives you a much better chance of predicting what will happen next.

For a short entry, here’s how I proceed. First, I look for where the POC aligns with an established resistance level. When the price approaches or retests this zone, that’s when I start to watch carefully. Before opening a short position, I wait for solid confirmation: a volume spike as the price approaches the POC. This signal tells me that a reversal or rejection is likely.

I also look at candlestick patterns. A bearish engulfing candle or a shooting star near the POC can really reinforce my conviction to go short. But honestly, I never do this without considering the broader market context. If the overall trend is bullish, I am more cautious even if the POC gives me a bearish signal.

Risk management is critical. I always place my stop-loss above the POC or the resistance zone. That protects me if the market moves against me. And after opening a position, I stay vigilant. I adjust my take-profit and stop-loss levels based on the volume dynamics that emerge. Trading POC is not a 'set and forget' game; you need to stay engaged and flexible.