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 now more than 24 hours old and has therefore lost all of its institutional relevance
- It acts as an 'Accelerant Zone' of thin, low-interest volume where price slices straight through without stalling or rotating
- 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 fresh breakout entry trigger; once price merely touches the level, an immediate continuation much lower becomes the base case
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