Rationale & Trading Techniques
The Point of Control (POC) indicates the price level at which the highest volume of trades occurred within the current price bar. This indicator draws an Extension Line from the current bar’s POC. When price is trending, the POC can provide an effective short-term support/resistance level that can be used as a basis for a trailing stop. This indicator is also useful for highlighting a Naked POC (Naked Point of Control – also referred to as a Virgin POC), i.e. a bar’s high volume price that has not yet been revisited.
Note the Naked POC in the 9:07:50 bar revisited in the 10:17:31 bar and the 9:40:40 bar’s Naked POC revisited in the 12:20:18 bar. Do you think 2265.75 represents a price target?
POC Extension Settings
|Extension Line Label||Text indicator for the Extension Lines|
|SG1||POC Extension Line||Use to control the Extension Line coloring. It is recommended to set this to Auto-Colouring Based on +/-. With this set, Extension Lines can be colored to indicate potential support (within an up bar) and resistance (POC within a down bar).|