What is difference between VPOC and POC?

Posted in CBOT Market Profile®, Footprint® Chart, User Tips by tharnett on February 13, 2012

VPOC is the Volume Point of Control (volume based)

POC is the Point of Control (time based)

The VPOC relates to volume and POC relates to time.  Both represent where the most trading occurred. VPOC is where the most volume occurred for the specified session or time frame. POC is the price at which trading spent the most time at.

Very often people confuse time with volume and think that the price the market traded at the longest would have the most volume, but this is a misconception. Especially when looking at 24 hour charts, the POC does not necessary mean the highest volume price. If only viewing the day session, many times the POC and VPOC are very close or the same, but not always.

Which is more important? – That is up to you.  Some traders prefer the VPOC because it is more exact when inferring how much interest a particular price was for traders, both buyers and sellers. If you use Market Profile, it often references the POC. Our software, MarketDelta, can use both the VPOC or POC when viewing a Market Profile chart.

If you visit www.marketdelta.com and search VPOC at top search box, you will get all sorts of good informtion.

How to graph the VPOC?

How to graph the POC?

The Market Profile add on is required in order to plot the POC and VPOC. If you have any questions please comment or contact us.

How to Plot the Developing VPOC

Posted in CBOT Market Profile®, User Tips by tharnett on February 6, 2012

There is new piece of functionality in 10.5 that could easily be overlooked, but it is an important improvement for those who rely on the VPOC (Volume Point of Control) as a reference point.

The new functionality allows for the plotting of the developing VPOC.  The developing VPOC plots a line and shows the history and progression of how the VPOC has adjusted based on price and volume activity.  Think of it as the history of where the high volume price has been over time.

To add this to a chart first add a Profile indicator to a chart. Once added, make sure the top most setting in its preferences is set to “Price and Volume”.  Then just check off the “Dev VPOC” box to add it to the chart.

This will plot based upon what is set in the Time Per Profile section in the preferences. In the screenshot below it was set to 2 days, meaning the developing VPOC is plotted for the past 2 days.