After a lot of requests I have created a comprehensive training course devoted to understanding order flow Point of Control.
If you trade Futures, Forex, Stocks or CFDs you owe it to yourself to understand Point of Control and how to apply it to your market. Point of Control is the one piece of order flow that works well in Forex, Stocks and CFDs in addition to Futures.
The Power of Point of Control course will expand you knowledge and understanding of order flow Point of Control and give you insight into the markets many traders simply do not have or see.
Point Of Control (POC) in order flow is the price level with the highest volume in a bar. The best way to think of Point of Control is in terms of value. We all know what value, we think about it everyday and don’t even realize it. Whether you are buying vegetables at the grocery market or buying the latest Samsung mobile phone we either accept price or reject it. The markets act the same way with the main difference being that prices are being accepted or rejected much faster and multiple times a day.
You have often heard me talk about how the Point of Control can act as support or resistance in the next bar in a sustained move. However, where the Point of Control appears in a bar is important from a market structure stand point. It becomes clearer when you take it in context of the market. For a market to find support it should preferably come after a move down. To find resistance, the market should have made a move higher.
The purpose of the market is to facilitate trade, but how does it happen? The market seeks out value and moves from value area to value area. In the case of individual bars, it moves from Point of Control to Point of Control.
When market participants accept price, they continue to trade and a Point of Control in a bar is formed. When market participants disagree on price, they reject it and the market looks for the next level of price acceptance.
You are probably wondering “what? Why would the market move to a level of price acceptance then reject it?” The market moves to a level based on the perception of value of different time frame traders. Short term traders have different ideas of what value is compared to long term traders.
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