Price Point of Control – Market Profile

The point of control (POC) is another key reference point within the value area. Since the value area is calculated based on a normal distribution, there is always a price point that will correspond to the mean in the normal distribution. This price point on the Profile chart is called the price point of control (POC). The POC is the price point where the market records the most trading activity during a specified trading session. Another way to think of the POC is the point of the fairest price within the value area. It is also the price where the greatest number of TPO prints occur during the session.
The POC is also the price that has the largest count of TPOs during the session. Sometimes, we have several prices within a value area that have an equal number of TPOs.

point of control - market profile


There are nine TPOs printed at each of the following prices: 1338.75,
1339, 1339.25, 1339.50, and 1339.75. Whenever this event occurs, the POC is assigned to the price that is closest to the center of the value area. The value of the center is calculated by the following formula


There are nine TPOs printed at each of the following prices: 1338.75,
1339, 1339.25, 1339.50, and 1339.75. Whenever this event occurs, the POC is assigned to the price that is closest to the center of the value area. The value of the center is calculated by the following formula

Value Area Center = (Value Area High + Value Area Low)/ 2

It is important to note that the POC does not always fall at the center of the value area. The point of control is consistently a key price level within the value area. It is frequently visited and tested during a given trading session. The greater the number of TPOs that make up the POC, the more significant it becomes.

Ankit Maheshwari

Ankit is an avid writer with experience of working Investment Banking domain for over 7 years. He has been tracking Indian markets for over 10 years now for educational and learning purpose.

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