Using POC (Point of Control) for Entry & StoplossExcellent Example of POC at work.
- Huge Accumulation Happened on JSL between 8th & 22nd July.
- Price remained Sideways and started dropping.
- Price took support exactly at the Point of Control (POC) of Huge Accumulation days and retraced back up.
What is POC?
It is a Point of Control. It tells us the average price at which maximum volume activity happened at a certain time period.
In the given example, it tells us the average price of the stock which was bought in Huge Quantities.
The psychology behind this?
Generally, if a huge buying has happened in stock, and the stock comes down at that price range of POC, the big hands probably will again initiate buying at the same price. It could provide us a great entry/support point.
