Recently, I’ve been analyzing how many traders use POC trading to identify key entry and exit points, and honestly, it’s quite effective when combined properly with volume analysis.

The interesting thing about the POC (point of control) is that it shows you exactly where the highest buying and selling activity was concentrated during a specific period. It’s not just another level on the chart; it’s where the market action actually happens. That’s where the big players are active, making it a pretty solid support or resistance zone.

When I work with POC trading, I always look for a specific setup for short positions. First, I identify if the POC aligns with a strong resistance. If the price approaches that zone, I need to check what’s happening with the volume. An increase in volume as the price nears the POC usually indicates that something is about to happen, whether it’s a rejection or a reversal.

Another detail I can’t ignore is candlestick action. If I see bearish patterns like a bearish engulfing or a shooting star right at the POC area, that gives me more confidence to go short. But I always check the broader market context first because a short trade only makes sense if the overall sentiment is bearish.

What many forget is risk management. I always place my stop loss above the POC or resistance. If the market surprises me and moves against me, at least I know exactly how much I stand to lose. After entering, I constantly monitor the position and adjust my take profit levels based on new volume readings and how the price is behaving.

In conclusion, POC trading is a serious tool when used correctly. It’s not magic, but combining POC, volume, and candlestick patterns gives you a clear view of where the market might reject or change direction.