POC, VPOC, and Market Profile Magnets

Mike at +50F. Tests POC at +80F. Bounces.
Later at +120F. Drops back to POC at +80F. Bounces again.
POC = magnet.
Mike keeps testing it. Support/resistance.
Nose (šš½) shows you where.
š§² Market Profile Magnets (POC/VPOC)
Market Profile tracks WHERE price spends TIME.
Not just high/low. Time distribution.
TPO (Time Price Opportunity):
Each 15-minute period = one letter.
- A = 09:30-09:45
- B = 09:45-10:00
- C = 10:00-10:15
- D = 10:15-10:30
- Continue...
At each price level, count the letters.
More letters = more time spent = more acceptance.
POC (Point of Control):
The price level with the MOST letters (most TPOs).
Example:
- +80F has letters: A, B, C, D, E, F, G (7 letters)
- +70F has letters: A, B, C (3 letters)
- +90F has letters: D, E (2 letters)
POC = +80F (most time spent there)
On Terminal: Nose (šš½)
VPOC (Volume Point of Control):
The price level with the MOST volume.
Example:
- +80F had 50,000 shares traded
- +70F had 20,000 shares
- +90F had 15,000 shares
VPOC = +80F (most volume there)
On Terminal: Ear (š¦»š¼)
Both are magnets.
Mike gravitates toward them. Tests them repeatedly.
š POC (The Nose) - Acceptance Level
POC = where Mike spent the most time.
Why it's a magnet:
If Mike spent 7 TPOs (1 hour 45 minutes) at +80F:
- Buyers and sellers agreed this is fair value
- Both sides transacted heavily here
- Acceptance level
When Mike moves away from POC:
- It pulls Mike back (like gravity)
- Tests POC as support/resistance
POC as Support:
Mike at +120F, drops.
Tests POC at +80F from above.
Bounces to +95F.
Translation: POC held as support. Acceptance level defended.
POC as Resistance:
Mike at +50F, rallies.
Tests POC at +80F from below.
Rejects to +65F.
Translation: POC held as resistance. Can't break acceptance level.
POC = the fair value anchor.
Mike tests it. Often holds.
𦻠VPOC (The Ear) - Liquidity Magnet
VPOC = where the most volume traded.
Why it's a magnet:
If 50,000 shares traded at +80F:
- Massive liquidity absorbed here
- Institutional orders filled
- Liquidity vacuum created
When Mike moves away from VPOC:
- Unfilled orders remain (limit orders stacked)
- Mike gets pulled back to fill them
- Liquidity magnet
VPOC vs POC (Different Jobs):
POC (Time):
- Where Mike spent most time
- Acceptance level
- Psychological anchor
VPOC (Volume):
- Where most volume traded
- Liquidity pool
- Institutional anchor
Often POC and VPOC are at the same level.
But not always.
Example:
- POC = +80F (7 letters, most time)
- VPOC = +75F (highest volume, big institutional order there)
Both are magnets. Different reasons.
šÆ How to Use POC/VPOC
As support/resistance beyond TD lines:
TD Lines = Structural:
- TD Supply/Demand built from swing points
- Real-time, session-specific
- Primary support/resistance
POC/VPOC = Acceptance/Liquidity:
- Built from time/volume distribution
- Secondary support/resistance
- Where Mike gravitates
Use together:
Mike at +120F, dropping:
Check:
- TD Demand at +100F? (structural support)
- POC at +80F? (acceptance level)
- VPOC at +75F? (liquidity pool)
Translation: Three layers of support. +100F first, then +80F, then +75F.
Example: Multiple Magnets
Mike drops from +150F:
- +120F: Tests TD Demand, bounces to +130F
- Drops again
- +100F: Tests POC (nose šš½), bounces to +110F
- Drops again
- +85F: Tests VPOC (ear š¦»š¼), holds
Three magnets. Three tests. Three bounces.
This is how magnets work.
ā Value Area (70% TPO Zone)
Value Area = the price range containing 70% of TPOs.
What it represents:
Where most trading occurred.
Not the entire range (high to low). The fair value zone.
How it's calculated:
- Find POC (most TPOs)
- Expand outward (up and down) until 70% of TPOs captured
- VA High = upper edge of 70% zone
- VA Low = lower edge of 70% zone
Example:
Session TPO distribution:
- +90F: 2 TPOs
- +80F: 7 TPOs ā POC
- +70F: 5 TPOs
- +60F: 4 TPOs
- +50F: 2 TPOs
Total: 20 TPOs
70% = 14 TPOs
Starting from POC (+80F, 7 TPOs):
- Add +70F (5 TPOs) = 12 total
- Add +60F (4 TPOs) = 16 total (ā„ 14)
Value Area: +60F to +80F (contains 16 TPOs = 80% actually)
VA Low = +60F
VA High = +80F
What it means:
Most trading occurred between +60F and +80F.
This is the fair value zone.
Above VA High (+80F): Overvalued, might fade back.
Below VA Low (+60F): Undervalued, might rally back.
Value Area as Boundaries:
Mike at +95F (above VA High):
Translation: Overvalued. Might fade back into Value Area.
Action: Watch for fade to VA High (+80F).
Mike at +45F (below VA Low):
Translation: Undervalued. Might rally back into Value Area.
Action: Watch for rally to VA Low (+60F).
Value Area = the fair value container.
Like IB (Initial Balance), but based on time distribution, not first hour.
šŖ¶ Tails (Single-Letter Rejections)
Tail = price level with only ONE letter.
What it signals:
Brief visit. Immediate rejection.
Mike touched this level for 15 minutes (one period), then left.
No acceptance. Pure rejection.
Example: Tail at High
Session:
- +90F: A (one letter) ā Tail šŖ¶
- +80F: A, B, C, D, E (5 letters)
- +70F: B, C, D (3 letters)
Translation: Mike spiked to +90F briefly (period A), then immediately dropped.
+90F rejected. Tail formed.
Action: +90F is strong resistance. Mike got rejected hard.
Example: Tail at Low
Session:
- +70F: C, D, E (3 letters)
- +60F: A, B, C, D (4 letters)
- +50F: A (one letter) ā Tail šŖ¶
Translation: Mike dropped to +50F briefly (period A), then immediately rallied.
+50F rejected. Tail formed.
Action: +50F is strong support. Mike got rejected hard.
Tails = extreme rejection zones.
One touch, immediate reversal.
Use as support/resistance.
šŖš„ Stamina (Post-IB Strength)
Stamina measures how much activity happened AFTER the first hour (post-IB).
Formula:
Stamina = (Post-IB TPOs / Total TPOs) Ć 100
Example:
- Total TPOs at +80F: 7 letters (A, B, C, D, E, F, G)
- IB TPOs (A-D): 4 letters
- Post-IB TPOs (E-G): 3 letters
- Stamina = (3/7) Ć 100 = 42.9%
Stamina Signals:
šŖ Strong Stamina (ā„70%):
- Most TPOs happened after IB
- Sustained activity post-10:30 AM
- Level defended throughout session
- Strong support/resistance
š„ Weak Stamina (0% post-IB):
- All TPOs happened in first hour (IB only)
- No activity post-10:30 AM
- Level abandoned
- Weak support/resistance
Example: Strong Stamina
+80F TPOs:
- IB: A, B, C (3 letters)
- Post-IB: E, F, G, H, I, J, K (7 letters)
- Total: 10 letters
- Stamina = (7/10) Ć 100 = 70% šŖ
Translation: Level defended throughout session. Strong acceptance. Good support/resistance.
Example: Weak Stamina
+90F TPOs:
- IB: A, B, C, D (4 letters)
- Post-IB: (none)
- Total: 4 letters
- Stamina = (0/4) Ć 100 = 0% š„
Translation: Level only tested in first hour, then abandoned. Weak. Don't trust as support/resistance.
Stamina tells you if the level is sustained or just first-hour noise.
šÆ Nose vs Ear (When They Disagree)
Usually POC (nose) and VPOC (ear) are close or same level.
But sometimes they diverge:
Scenario 1: POC Higher Than VPOC
Example:
- POC = +80F (7 letters, most time)
- VPOC = +70F (highest volume)
Translation:
- Mike spent more time at +80F (acceptance)
- But most volume traded at +70F (institutional order)
Which magnet is stronger?
Depends on context:
- Intraday: POC stronger (time acceptance)
- Institutional: VPOC stronger (liquidity pool)
Watch both. Mike will test both levels.
Scenario 2: VPOC Higher Than POC
Example:
- POC = +70F (8 letters)
- VPOC = +85F (volume spike, big order)
Translation:
- Mike spent more time at +70F
- But a massive volume spike occurred at +85F
VPOC = institutional level. Likely a big order filled there.
Watch +85F closely. Liquidity magnet.
When nose and ear disagree, you have TWO magnets.
Mike will test both.
š„ Real Example: AVGO Feb 6
From the chart screenshot:
Market Profile:
POC = +320F (near IB Low at +331F)
Translation: Most time spent near the low of IB. Acceptance level there.
Session Flow:
10:00-11:00 AM:
- Mike tests POC at +320F multiple times
- Bounces each time
- POC holding as support
11:00 AM:
- Mike breaks IB High at +516F (Entry 3)
- Extends to +730F
14:00-15:00 PM:
- Mike pulls back from +730F
- Tests... where?
- Not back to POC (+320F) - too far
- But tests halfway levels
POC at +320F was the magnet in the first half of the day.
After IB break, new acceptance levels form (new POC higher).
Magnets shift with the auction.
š§ POC/VPOC vs TD Lines (Which to Trust?)
Both are valid. Different purposes:
TD Lines (Primary):
- Built from swing points (structural)
- Real-time, session-specific
- Works across all tickers (Mike-normalized)
- Use first
POC/VPOC (Secondary):
- Built from time/volume distribution (acceptance/liquidity)
- Session-specific
- Shows where Mike gravitates
- Use for additional confirmation
Hierarchy:
1. TD Supply/Demand (structural resistance/support)
2. IB High/Low (first hour extremes)
3. POC/VPOC (acceptance/liquidity magnets)
4. Value Area boundaries (fair value zone)
Example: All Four Layers
Mike dropping from +150F:
Resistance/Support Layers:
- +120F: TD Demand (structural)
- +100F: IB High (first hour extreme)
- +85F: POC (nose šš½, acceptance level)
- +75F: VA Low (fair value boundary)
Mike tests them in order.
Each layer = potential bounce.
Don't replace TD lines with POC/VPOC.
Add them to your toolkit.
š When POC/VPOC Are Lying
POC/VPOC can be misleading:
Scenario 1: Stale POC (From Range Day)
Yesterday:
- POC at +80F (acceptance level)
Today:
- Gap opens at +120F
- POC still showing +80F (yesterday's data)
Translation: Yesterday's POC irrelevant. Mike won't test it.
Fix: Only use today's POC (current session).
Scenario 2: POC in LOFT/CELLAR
POC at +85F (in LOFT zone of IB):
Translation: POC near IB High. High rejection risk.
Don't blindly trust it as support.
Context matters. LOFT/CELLAR override POC.
Scenario 3: Low-Volume VPOC
Total session volume: 5,000 shares (very low).
VPOC at +75F.
Translation: Low liquidity session. VPOC not meaningful.
Need high volume for VPOC to matter.
POC/VPOC work best on liquid, active sessions.
š± The Complete Support/Resistance Stack
Resistance Layers (Mike Climbing)
āā 1. TD Supply (structural, swing high)
āā 2. IB High (first hour ceiling)
āā 3. POC (šš½ acceptance level)
āā 4. VPOC (š¦»š¼ liquidity pool)
āā 5. VA High (fair value upper boundary)
āā 6. Tail šŖ¶ (rejection zone)
Support Layers (Mike Dropping)
āā 1. TD Demand (structural, swing low)
āā 2. IB Low (first hour floor)
āā 3. POC (šš½ acceptance level)
āā 4. VPOC (š¦»š¼ liquidity pool)
āā 5. VA Low (fair value lower boundary)
āā 6. Tail šŖ¶ (rejection zone)
Mike tests these layers in order.
Not all hold. Some break.
The more layers aligned, the stronger the support/resistance.
ā Questions
"Do I need to calculate POC/VPOC manually?"
No.
Terminal does it automatically.
Look for:
- šš½ Nose = POC
- š¦»š¼ Ear = VPOC
Just watch for the symbols.
"What if POC and VPOC are far apart (20F+)?"
Then you have two separate magnets.
Mike will test both.
Strategy:
- Watch POC for time acceptance
- Watch VPOC for volume liquidity
- Both are valid support/resistance
"Should I enter at POC/VPOC?"
No.
POC/VPOC are not entry signals.
They're support/resistance levels.
Use for:
- Target projection (where Mike might test)
- Stop placement (below POC on long, above POC on short)
- Confluence with Entry 1/2/3
Don't enter just because Mike reached POC.
"What if Value Area is really wide (100F+)?"
Wide Value Area = choppy session.
70% of TPOs spread across large range.
Translation: No clear acceptance level. Range day.
Strategy: Be cautious. No clear fair value = unpredictable.
"Do Tails always hold as support/resistance?"
No. But often.
Tail = strong rejection (one touch, immediate reversal).
Most of the time, Mike respects Tails.
But not guaranteed.
Use with other confirmations (TD lines, IB, etc.).
š See It Live
š Open SPY Terminal
What to look for:
- Nose (šš½) = POC (most time spent)
- Ear (š¦»š¼) = VPOC (most volume)
- Mike testing these levels repeatedly
- Bounces at POC/VPOC (magnets working)
- Tails (šŖ¶) at extremes (rejection zones)
- Stamina (šŖ/š„) showing strength
Watch the magnets work.
šÆ The Bottom Line
POC (nose šš½) = most time spent (acceptance level).
VPOC (ear š¦»š¼) = most volume (liquidity magnet).
Both are magnets. Mike tests them repeatedly.
Value Area = 70% TPO zone (fair value).
Tails (šŖ¶) = single-letter rejection (strong support/resistance).
Stamina (šŖ ā„70%, š„ weak) = post-IB strength.
Use as secondary support/resistance:
- Primary: TD Supply/Demand
- Secondary: IB High/Low
- Tertiary: POC/VPOC
The more layers aligned, the stronger the level.
Magnets pull Mike back. Watch for tests. Plan accordingly.
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