A 'naked' Point of Control is a prior session's POC that has not yet been revisited. Markets have a strong tendency to return to naked POCs, trade the return for magnet-to-level moves.
Indicators Used
VWAPVolume
Rules
📈 Long (Price Below nPOC)
- Identify a naked POC from a prior session (within last 5-10 days)
- Current price is trading below the nPOC
- Look for momentum shift: price above VWAP + rising volume
- Enter long targeting the naked POC
- Stop: 1 ATR below entry or prior session low (whichever tighter)
- Target: naked POC level (often 3-5R from strong trend entries)
📉 Short (Price Above nPOC)
- Naked POC below current price
- Bearish momentum: below VWAP + volume on declines
- Target the nPOC as magnet level
- Stop: prior session high
5 days
Lookback
3-5R
Typical Move
💡 Pro Tip
Naked POCs have statistical pull toward them. But the thesis isn't 'it will bounce AT the POC,' it's 'price wants to return TO the POC.' Take profit at the level. What happens after is a separate setup requiring its own analysis.