easy · Volume Profile Analysis profile-anatomy
In a volume profile context, when a trader says the POC is acting as a 'fair-value magnet,' they mean:
- Price will, without any single exception, close at exactly the POC level by the very end of each and every trading session
- The POC is computed using a proprietary magnetic-field algorithm that continuously recalibrates the precise level in real time
- Price is mechanically prohibited from ever spending more than ten consecutive minutes trading away from the POC during any session it forms
- The POC emits a gravitational-like pull on price because many open positions are anchored near it, drawing price back when it deviates
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