Recently, I was reviewing technical analysis strategies and came across something many traders underestimate: POIs. Basically, POI stands for Point of Interest, and if you think about it, it's where all the action happens on the chart.

A POI is that specific area where you expect to see strong price movements — bounces, breakouts, massive liquidity entry. It forms from previous anomalous movements: huge candles with long shadows, price gaps, false breakouts, concentrated demand or supply zones. The core idea is that the price tends to return to these points like a magnet.

Now, what are the most common POIs you should watch? First are breakout candles — when you see a strong candle with massive volume, that’s a legitimate POI because real liquidity is entering. Then are rejection candles with long shadows, those hammers and shooting stars we all recognize. Also, liquidity imbalances, those gaps on the chart that the price almost always ends up closing. And of course, supply and demand zones where orders accumulate.

The interesting thing about POI trading is that once you identify these points, you can build a solid strategy. You wait for the price to return to the POI, look for a clear reversal signal — a reversal candle, a structure break — and that’s where you enter. The stop loss should be 10-15 points below or above the POI, depending on your direction.

One thing that has worked for me is combining POI with other indicators. If the price hits the POI and the RSI is at 70, you have a pretty strong sell opportunity. If the POI is above the 50/200 EMA, it acts as support. And if you see a bounce from the POI with high volume, that’s additional confirmation that something important is happening.

Let’s take a practical example. Imagine XRP on a 15-minute chart — you see a massive upward candle that rises from $1.9500 to $2.0000 in a short time. That creates a clear POI at $1.9500-$1.9600. Two hours later, the price returns to that zone. If a hammer appears at $1.9550, you have a signal that traders are interested again. You could anticipate a bounce toward $2.0000, with your stop loss at $1.9450.

But beware — there are mistakes most people make. Don’t enter before confirmation appears. Don’t ignore the overall market trend. Don’t do POI trading without proper risk management. And use appropriate timeframes — 15 minutes for scalping, not larger ones where you lose precision.

The key is to integrate POI with market structure, moving averages, and volume. If everything lines up, you have a fairly reliable setup. That’s why more and more traders incorporate this into their analysis — it’s not magic, it’s just recognizing where the market has shown real interest.