Bikotrading Academy
Bikotrading Academy 2 minutes reading from Bitcoin

POINT OF CONTROL: Point of Control Point Of Control

🔥🚩POINT OF CONTROL (POC): THE MOST USEFUL TOOL FOR TREND TRADER

Point of control is a part of VolumeProfile indicator and very useful tool to identify upcoming BTC or any other asset move. I will explain you how to use this tool in your trading.

📊 HOW TO USE POINT OF CONTROL Point of control (red line on the chart) is the place of the largest accumulation of liquidity. We can say that this is the place of "the biggest battle between bulls and bears":

🔥the point of control becomes a resistance in case of "bears' victory" and crypto start to fall 🔥the point of control becomes a support in case of "bulls' victory and crypto start to grow

✅ No matter how complicated this tool looks, it is very easy to use: 1. extend the volume profile indicator from the lows to the highs. The indicator automatically shows the largest accumulation of liquidity showing POC (red line).

2. wait until the price tests the POC as support or resistance. From time to time the price can consolidate directly on the POC, which indicates the "battle" of long and short traders.

Pay attention to the chart. I have selected for you 4 cases of using POC on the volume profile: 1. Bitcoin just touched the POC at 39,700 and bounced up 72%. 2. the price tested the POC as resistance at 61,100 after which the price fell by 45% from the absolute highs.

3. Bitcoin consolidated around the POC at 39,000 for some time. The price fell by 31%. 4. POC is at the price of 19,150 per Bitcoin . Now you have to expect the price to return to this price level and carefully watch the price reaction on POC.

✅ Point of control help you to identify the power of bulls or bears on different timeframes and make the right trading decision in the most of cases. Personally, I use this tool effectively for swingtrading and scalping as well.

This post is based on this twitter thread.

Comments

Please login to comment.