TradingView
PtGambler
Nov 23, 2022 3:39 PM

How to trade using Value Areas and POC? Education

US SPX 500OANDA

Description

A few key concepts when using Market Profile in your trading:

1) Point of Control (POC) acts as price magnets, as they represent the price level where most time was spent during a trading day. Price tends to gravitate towards them.

2) Naked (Not visited) POC acts as stronger magnets than visited POCs.

3) When price enters / breaks into a Value Area, which represents a range of "fair value", price tends to visit the other end of the Value Area. For example above, the price breaks up from the Value Area Low before end of day yesterday, hit the Value Area High this morning.

You definitely won't find these key levels and ranges with traditional support and resistance lines drawing methods. Using Market Profile will give you the edge to become a better trader.

See my previous 2 posts:



Comments
akivafeinstein
Thanks
sinjat
seemed like FVG or similar concept, except this is "value area". Have you used this tool to determine which side of "value area" will be taken out first ?
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