POI: The invisible map that traders need to master

When you analyze charts, the price does not move randomly. There is an “invisible magnet” that attracts price action to certain regions — this is what we call POI (Point of Interest). Understanding this dynamic can transform your market approach.

What exactly is a POI?

A POI is a specific zone on the chart where the price previously experienced anomalous activity. This region acts as an attraction point because it concentrates:

• Explosive candles with abrupt movements and large shadows (wicks)
• Liquidity gaps that the market seeks to fill
• Fakeouts (fakeouts) that leave footprints on the chart
• Intense concentrations of supply or demand
• Zones where market makers initiated their positions

The premise is simple: the price revisits these areas. When it does, a reversal, structural break, or massive liquidity influx can occur.

What POI patterns should you recognize?

Breakout Candles (Breakout Candles)

When a candle moves sharply up or down with substantial trading volume, it marks a legitimate POI — real liquidity is entering at that specific moment.

Rejection Candles (Rejection Candles)

A candle with a long shadow and clear rejection of price (such as Hammer or Shooting Star patterns) indicates a testing zone — traders are repeatedly testing this level.

Liquidity Imbalances (Imbalance)

Areas where the price moved quickly, leaving “holes” that the market naturally seeks to fill later.

Supply/Demand Zones (Supply/Demand)

Regions where buy or sell orders are densely clustered, creating natural barriers or springboards.

How can you profit from this information?

Strategic Entry

Wait for the price to return to the POI and look for reversal confirmations — specific candles or structural breaks in the price pattern. Do not enter before confirmation.

Calibrated Stop Loss

Place your stop loss 10 to 15 points beyond the POI to capture false moves without being prematurely eliminated.

Combination with technical readings

If the price approaches the POI and the RSI hits 70 (overbought zone), you have a strong sell setup — the math and mechanics align.

Precise trade exits

After entering at the POI, set your targets at the next resistance or previous highs/lows. This creates a clear risk-reward ratio.

Real case: tracking XRP in action

Imagine a 15-minute chart. A giant candle pushes XRP from $1.9500 to $2.0000 in a few minutes — this is your inaugural POI, marked around $1.9500-$1.9600.

Hours later, the price returns. When it touches this zone again, it becomes an active observation area. If a Hammer pattern appears at $1.9550, traders recognize interest in this region — potential reversal.

The analyst can then anticipate an upward move toward the previous high at $2.0000, monitoring the risk of a break below $1.9450.

Note: this is just an educational example, not trading advice.

How to incorporate POI into your complete analysis?

Overall market structure

Determine if you are in an uptrend or downtrend. POI works best when aligned with the trend, not against it.

Moving averages (EMA 50/200)

If the POI is above the EMA, it acts as support. Below, as resistance. This enhances its reliability.

Confirmation by volume

A POI that triggers a reversal accompanied by high volume adds robustness to the signal — a double confirmation.

Traps that ruin results

• Entering before any confirmation appears
• Ignoring the overall context and trend direction
• Relying on POI without proper risk management
• Using POI on very high or very low timeframes (ideally start on 15m)

Mastering POI puts you ahead of most traders because you read what the market has already written on the chart.