A-Z Point of Interest (Poi)
A-Z Point of Interest (Poi)
A-Z Point of Interest (Poi)
↳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.
↳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.
↳As you can see, a Breaker usually occurs when the price
creates a BOS.
↳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.
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