Fairest Price or Point of Control

Let's first discuss about the Halfback (Hf)- it is simply the center of the day’s range. There are two kinds of POC: 1. T-POC & 2. V-POC. V-POC is the price level closest to the Hf & having highest volume; while T-POC is the price level closest to Hf & having highest TPOs. In TradingView, using volume profile, what we get is V-POC; however, I personally look at both types & I prefer T-POC so as an important market element called “Time” get its due. Most important aspect of POC is that it is taken as mean for calculating the Value Area as discussed later.

T-POC can be further divided into 1. P-POC i.e., Prominent POC with 6-10 TPOs; & 2. VP-POC i.e., Very Prominent POC, with more than 10 TPOs.

During day’s auction, we need to monitor the POC for its migration, i.e., it may shift from one price grid to another. For any healthy trending day, POC should migrate proportionate to the price movement. Thus, migrating POC is a function of both RE & Time. Prominent or very prominent POC, may act as magnet next day, which means such element may attract prices towards it; & to auction away from P-POC or VP-POC requires above average efforts, i.e., good OTP volumes.