Point of Control
The Point of Control (POC) is the specific price level within a given time period where the highest volume of trading occurred. It represents the area of greatest agreement between buyers and sellers, effectively serving as the market's perceived fair value for that duration.
In the context of Volume Profile analysis, the POC is a crucial reference point for traders. When the price is above the POC, it may act as a potential support level, while being below the POC can turn it into resistance.
Traders often look for price to return to the POC to re-test the level of high interest. The POC is dynamic and changes as new trading data is added to the profile.
It is a key metric for understanding where institutional interest is focused and where the market is most likely to find balance. By identifying the POC, traders can better align their strategies with the dominant market consensus.