medium · Volume Profile Analysis reference-levels-migration
A trader identifies a 'Naked POC' (nPOC) from two sessions ago at $0.66710 on AUD/USD. Today, price is trading at $0.66950 and begins to decline.
How should the nPOC influence the trade plan?
- It should be ignored because it is more than 24 hours old and has likely lost its institutional relevance.
- It acts as an 'Accelerant Zone' where price will likely move through it without stalling.
- It should be treated as a high-probability magnetic target for a short position, with a profit target set $1-2 pips before $0.66710.
- It should be used as a breakout entry point; if price touches it, it is likely to continue much lower.
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