A-Z Point of Interest (Poi)

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A-Z

POINT OF INTEREST (POI)


THE.EBOLFAZL
POI (POINTS OF INTEREST)
↳In this video, we will explore the topic of Points of Interest, also known as POIs.

↳A POI is a price level where we can expect the market to react, a setup to form, or potentially a place to enter a
trade.

↳The main problem people have with POIs is that there are so many visible on the chart that most people don't
know which one is the correct one and especially how to choose it.

↳This is one of the reasons why we need rules to select a POI in order to give us more possibilities and
objectivity in choosing a POI. Let's begin!
FUNDAMENTAL RULES OF POIs
↳RULE #1: A high probability POI should be chosen from the Higher Timeframe (HTF). The HTF always dictates in
every situation. This is one of the reasons why people struggle to choose a POI because they focus too much on
the Lower Timeframe (LTF), ending up with too many options, making their analysis very complex and doubtful.
This means that a POI should always be chosen from the highest possible timeframe.

↳RULE #2: A high probability POI must have liquidity above if we are looking for BUYs and below if we are
looking for SELLs. This gives the market a REASON to go towards your POI and a REASON to react at the POI
itself.

↳RULE #3: A high probability POI must be unmitigated on the timeframe in which we select it.

↳RULE #4: A high probability POI should be the closest POI to liquidity. In the section dedicated to Liquidity, we
noticed that when manipulation occurs, it is rapid. Therefore, after manipulating a certain area, the market tends
to make a very fast move before reversing. So if the POI you have selected is not the closest to liquidity, you risk
missing the move, and this is the only scenario where we will choose a POI on the LTF instead of the HTF.
KEY LEVELS
↳Our view of POIs is completely different from what you have always
been accustomed to seeing.

↳The POIs we will use are Key Levels, which are nothing but the
starting point of what POIs have become as you have known them so
far.

↳Key Levels are Price Levels, not zones within the market.

↳To understand them better, we will use the POIs and combine them
with OHLC values.

↳If you don't know what they are, you will find a diagram at right side.

↳Remember that EVERY OHLC value of a POI is what we define as a Key


Level.

↳In the following lessons, you will see them displayed as zones just to
have neat slides, but remember they are Price Levels, not Zones.
ORDERBLOCK
↳The first POI we will explore is the Orderblock.

↳We have Bullish Orderblocks and Bearish Orderblocks.

↳A Bullish Orderblock is the last Sell candle before a


Bullish move.

↳It is not always a single candle; in some examples, we


may find groups of candles that on a Higher Timeframe
will form a single candle.

↳A Bearish Orderblock is the last Buy candle before a


Bearish move.

↳By the term "move," we can also mean a single candle of


the opposite color.

↳For an Orderblock to be valid, it MUST take liquidity.

↳This gives it a REASON to become a Point of Interest.


EXAMPLES OF ORDERBLOCK
EXAMPLES OF ORDERBLOCK
BREAKER BLOCK
↳The second POI we will explore is the Bearish/Bullish
Breaker Block.

↳The Breaker Block is simply an Orderblock that has not


been respected.

↳Therefore, when the price invalidates an Orderblock,


the market may return to retest that price zone to
generate a move.

↳The Breaker will typically be found at a specific point


within the structure.

↳Below is a diagram illustrating how to find it.

↳As you can see, a Breaker usually occurs when the price
creates a BOS.

↳Let's now look at some chart examples so you can get a


better idea of how it appears.
EXAMPLES OF BREAKER BLOCK
EXAMPLES OF BREAKER BLOCK
IMBALANCE FILL
↳The third type of POI is the Imbalance Fill. First let’s go
over what an imbalance is.

↳When price has not been delivered fairly between


buyers and sellers, the market will become one sided
which ends up leaving an imbalance in price.

↳The way we can identify an Imbalance is the gap in the


middle of 3 Candles.

↳So between Candle 1 and 3 there will be a gap where the


Candle #1 and Candle #3 do not touch. If they touch then
there is no imbalance.

↳Let’s look at a quick diagram so you can see what I am


describing.
EXAMPLES OF IMBALANCE FILL
EXAMPLES OF IMBALANCE FILL
HIDDEN BASE
↳The fourth POI we are going to see is the Hidden Base,
also called HB = Hidden Base.

↳Understanding this topic will allow you to identify an


Orderblock on the Lower Timeframe without going down
to it.

↳The Hidden Base can also be seen as a refined version


of the Inefficiency.

↳Let's take a look at the diagram below before we go on


to see some examples on the chart!
EXAMPLES OF HIDDEN BASE
EXAMPLES OF HIDDEN BASE
UNMITIGATED WICK
↳The fifth POI we're going to discuss is the Unmitigated
Wick. The explanation for this POI is quite simple, as it
refers to a Wick that has not yet been tested within the
market.

↳A key point of this POI is that the price can use the open
and the 50% of the Wick. Therefore, if the price has
already tested the open, the 50% could still be used.

↳I recommend not using the 50% by measuring the Wick


but rather going to a Lower Time Frame (LTF) to find a POI
on the LTF.
EXAMPLES OF UNMITIGATED WICK
EXAMPLES OF UNMITIGATED WICK
Watch This Video Before Gets too late

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