Trading Strategies Using the VPOC (Volume Point of Control)

Trading Strategies Using the VPOC (Volume Point of Control)

Overview

The volume point of control, often called VPOC, highlights the highest volume price within each bar no matter the time frame of chart. The VPOC helps traders identify where the highest volume is trading within a bar and therefore position themselves accordingly.

Strategies

Strategy #1: Check the “Extend” option (see instructions below) and use VPOC’s as dynamic support and resistance until the naked vpoc gets “covered up”.

Strategy #2: Use the vpoc as a tool to monitor the trend or the direction of breakout. As seen in the video, the vpoc will shift higher and higher in an up trend and lower and lower in a down trend. Look for it to shift when the market pauses or reverses.

Strategy #3: When the market is range bound or in consolidation, use the vpoc and as early sign for which way the market may break out. There is a good example of that in the video below.

Setup Instructions for MD Desktop

Here are instructions for adding it to your Footprint Charts in MarketDelta Desktop.

  1. Right click the Footprint chart and choose Modify FP...

  2. Click HiliteIt

  3. Add POC

  4. Choose your settings. If you want a line to extend across the chart to signify the "naked vpoc's", check the Extend box.

Complete instructions with images can be found here.

You Can't Make This Stuff Up

You Can't Make This Stuff Up

Absorption - Reading Supply and Demand on a Footprint Chart

Absorption - Reading Supply and Demand on a Footprint Chart