GLOSSARY · MARKET STRUCTURE
What is Point of Control (POC) & Value Area?
The point of control is the price with the most volume traded; the value area holds about 70% of volume.
Volume profile shows how much trading happened at each price. The POC is the busiest price. The value area high (VAH) and low (VAL) bracket where about 70% of volume traded.
Prices with heavy volume act like magnets; prices with little volume tend to be moved through quickly.
EXAMPLE
If yesterday's ES POC was 5,040 and price opens at 5,060, many traders watch 5,040 as a pullback target.
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