TL;DRThe single price level where the most volume traded during a given period. The POC acts as a magnet, drawing price back toward it. It represents the price that the largest number of participants agreed was fair.
The Point of Control (POC) is the price level with the highest traded volume during a defined period, usually one session. On a Volume Profile histogram, it's the longest bar, the level where the most transactions occurred.
The POC represents the price where the most agreement between buyers and sellers took place. It's the market's best estimate of fair value for that session.
Price is drawn toward the POC like a magnet. When price moves away from the POC during the session, it often returns to it before making another move. This mean-reverting behavior makes the POC one of the most reliable intraday reference levels.
The prior session's POC is watched by many institutional traders. If today's price action stays near yesterday's POC, it suggests the market hasn't changed its view of value. If price moves significantly away from the prior POC, a new value area is being established.
Multiple sessions' POCs at similar levels create a strong multi-day reference point. When three or four days' POCs cluster around the same price, that level becomes significant structural support or resistance.
A naked POC is a prior session's Point of Control that price has not revisited since it was established. Naked POCs represent unfinished business, levels where significant trading occurred but that the market left behind.
Many traders track naked POCs from recent sessions and use them as targets or reference levels. The idea is that price often returns to these levels eventually to retest the area where participants last agreed on value.
Not all naked POCs get revisited, but they're worth tracking, especially when price approaches them from above or below after a multi-day move.
POC as intraday magnet
Today's developing POC on ES is at 5,202. Price rallied to 5,218 in the morning and is now pulling back.
As price retreats from 5,218, the POC at 5,202 acts as a magnet. A mean-reversion trader might target 5,202 as a pullback destination. If 5,202 holds as support, it confirms the level's significance.
Naked POC as a target
Three days ago, ES had a POC at 5,175 and then rallied without revisiting that level. Today, ES is pulling back from 5,210.
5,175 is a naked POC. If the selloff continues, 5,175 is a potential target and support level. Traders may look to buy near 5,175, expecting the unfinished business to draw price and attract buyers.
Blindly fading every move away from the POC
On trend days, price moves away from the POC and doesn't return. The POC magnet works best on balanced, range-bound days. Identify the day type before using the POC for mean-reversion.
Only watching today's developing POC
The prior session's POC is equally important. Where today opens relative to yesterday's POC sets the tone for the session.
Treating the POC as an exact price
Like all volume-based levels, the POC is part of a zone. Expect activity around the POC, not precise bounces at the exact tick.