How to Plot and Trade Naked POC's (Point of Control)

How to Plot and Trade Naked POC's (Point of Control)

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A useful way to identify support and resistance is to reference naked POC's. A naked point of control represents the high volume price within a bar that has not been pierced by a subsequent new bar. It is represented as a line drawn across the chart into the future until price trades that price again. Once the price trades the lines stops drawing. Look at these examples to see how it is visually represented on the chart. One of the benefits of MarketDelta is this technique can be applied to any time frame chart, not just the typical 30 minute bars. These can be applied to any interval type available on Footprint charts.

How to Trade Using Naked POC's

The best way to apply naked POC lines is to identify support below and resistance above.

DEFINITION - POC is short for "point of control". A POC is a price that attracted a lot of trading volume in the past, so the idea is if price approaches it again in the future it will serve as a stopping point, at least temporarily. Traders who traded heavily there in the past will most likely defend it again in the future. For this reason alone naked POC's become price attractants but also price stoppers.

  • In an uptrend, naked POC's will be created below as price trades higher, creating good support levels to refer to when price pulls back.
  • In a downtrend, naked POC's will be created above as price trades lower, creating good resistance levels to refer to when price pulls back.

Settings (How to Add to MD Desktop)

  1. Right click and choose Modify FP.
  2. Click HiliteIt
  3. Add POC and check the box "Extend".

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