Point of Control (POC)
The single price level with the highest traded volume within a given period, identified from a volume profile, often treated as a particularly significant support or resistance zone.
The Point of Control is the single price level that saw the highest total traded volume within a given period, identified by examining a volume profile (see Kaavon's "Volume Profile" glossary definition), which plots traded volume horizontally across price levels rather than vertically across time. Because so much trading activity occurred at the POC, it's often treated as a particularly significant price level, reflecting where the market found the strongest agreement on fair value during that period.
Traders commonly watch the POC as a potential support or resistance zone (see Kaavon's "Support and Resistance" glossary definition), reasoning that a price level where so much volume previously traded is likely to attract renewed interest if price revisits it later. As new trading periods unfold, the POC can shift to reflect wherever the heaviest volume has concentrated most recently, meaning it's generally recalculated and monitored on more of a rolling, up-to-date basis rather than treated as a single permanently fixed level.
Examples
- A price level identified as the Point of Control, having seen unusually heavy trading volume, is commonly watched as a potential support or resistance zone if price revisits it later.
- The Point of Control shifts over time as new trading periods unfold, reflecting wherever the heaviest recent volume has concentrated rather than staying fixed at one permanent level.