By Marco BösingWhat Is the POC (Point of Control)?
The Point of Control (POC) is the single price level where the most volume was traded within a given time period. It is the most prominent point in the volume profile and represents the price level where buyers and sellers engaged most intensively.
The POC holds special significance in Auction Market Theory: it marks the price at which the market found the greatest consensus — the fair value from the perspective of participants during that period.
How Is the POC Calculated?
The POC is derived directly from the volume profile. The volume profile aggregates traded volume over a defined time period and assigns it to respective price levels. The level with the highest volume bar is the POC.
Importantly, the POC always refers to a specific time period:
- Session POC: The level with the highest volume within a trading session
- Composite POC: The level with the highest volume across multiple sessions
- Developing POC: The POC that changes during the ongoing session
Significance of the POC in Trading
POC as a Magnet
The POC frequently acts as a price magnet. Since the most volume was traded here, price tends to return to this level when it moves away. Traders refer to this as "mean reversion to fair value."
POC as Reference for the Next Session
The prior session POC is one of the most important reference levels for the current trading day:
- Price above prior POC: Suggests a bullish bias
- Price below prior POC: Suggests a bearish bias
- Price at prior POC: Indicates equilibrium and potential consolidation
Naked POC
A "Naked POC" is a POC from a past session that price has not revisited. Naked POCs are considered unfinished business and frequently attract price at some point.
Migrating vs. Fixed POC
When the developing POC jumps to a new price level during the session, this is called "migration." A migrating POC shows that the accepted fair value is shifting — a sign of trend activity. A stationary POC indicates balance.
POC in Combination with Other Tools
The POC reaches its full analytical power when combined with other order flow tools:
- POC + VWAP: When both are at a similar level, the convergence is a strong indication of fair value
- POC + Value Area: The POC always lies within the value area and marks its center
- POC + Footprint: High activity at the POC level in the footprint can indicate accumulation or distribution
Frequently Asked Questions
Which time periods are most important for the POC?
The prior-day POC and weekly POC are the most commonly used references. The session POC is relevant for intraday decisions, while the composite POC over longer periods shows the higher-timeframe fair value.
Is the POC the same as VWAP?
No. The POC is the price level with the highest volume (a discrete level), while VWAP is the volume-weighted average price of all transactions (a dynamic average). Both can be at similar levels but measure different things.
Can the POC change after the session ends?
No. Once the session is complete, the POC is fixed. Only the developing POC of the current session still changes with each new transaction.