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?

  1. It should be ignored because it is more than 24 hours old and has likely lost its institutional relevance.
  2. It acts as an 'Accelerant Zone' where price will likely move through it without stalling.
  3. 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.
  4. It should be used as a breakout entry point; if price touches it, it is likely to continue much lower.

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