Recently, I was reviewing entry strategies in resistance areas and came across something interesting about POC trading. The point of control is really one of those concepts that many traders ignore but can make a difference in your trades.

Basically, the POC (point of control) shows you where the highest buying and selling activity has concentrated over a certain period. It’s not just a random number; it’s the level where buyers and sellers truly clashed. That’s why it works so well as support or resistance.

What caught my attention is how to combine this with volume analysis. When you see the price approaching a POC trading with increased volume, that’s where things get interesting. This volume spike typically indicates that something is happening, that there’s conviction behind the move.

For a sell entry, the logic is quite straightforward. First, identify if your POC coincides with a strong resistance. If so, wait for the price to test that zone again. Then confirm with volume: if you see that as the price rises toward the POC, volume spikes, it’s a good sign that the market might reject that level.

Candlestick patterns are also useful here. A bearish engulfing or a shooting star right at the POC trading gives you more confidence to execute. But don’t enter just because of that; you need to see the broader market context. Are we in a downtrend? Is the overall sentiment negative? That matters.

Risk management is where many fail. Place your stop loss above the POC or resistance, not inside. And here’s the important part: after entering, constantly monitor. POC trading isn’t a set-and-forget; volume changes, price dynamics evolve. Adjust your take profit and stop loss levels based on what you see in real time.

The truth is, once you understand how POC works in relation to volume, you start seeing opportunities you previously overlooked. It’s worth dedicating time to mastering this.