What is difference between VPOC and POC?

Posted in CBOT Market Profile®, Footprint® Chart, User Tips by Trevor Harnett 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.

Chart of the Week

Posted in Footprint® Chart by Trevor Harnett on January 7, 2011

Every now and then we look to highlight an interesting chart that showcases some of the powerful features within MarketDelta. Here is an example of a Footprint chart set to the Footprint Profile type (any Footprint type could be used) showing the volume point of control (VPOC) as a blue box within each bar and then a blue line denoted as a “naked VPOC”.

There were 2 indicators used to create this chart. The Profile indicator to draw the naked POC lines and the Volume Price Statistic to draw a box around the high volume price. A naked VPOC is simply a high volume price that has yet to be re-tested. So the blue line will continue to draw across the chart until that price trades again.

Many traders like to “lean” on high volume areas and it is a known fact the market likes to test high volume areas. So one way to use this information would be to look at these lines as support and resistance areas then use the “inside the bar” Footprint information to get in and manage the trade.
The screenshot below shows the most recent couple of days using 30 minutes chart. Here is the chart definition. This chart definition requires the Standard + Market Profile edition or higher.