Who this entry is for — For anyone who knows the definitions of POC and Value Area but not how to use them in real time. This entry translates the encyclopaedic concepts into Steidlmayer operational rules.
Source: Steidlmayer, Markets and Market Logic (1986); CBOT Market Profile Handbook (1984–85). Definitions: POC, Value Area. Raw:
raw/sources/steidlmayer/.
Prerequisites
POC, Value Area, Market Profile, Equilibrium and imbalance.
POC: price gravity
The Point of Control is the price with the highest volume (or TPO) in the session. Steidlmayer treats it as centre of gravity: in equilibrium price tends to return to the POC after extensions towards VAH and VAL. In imbalance the POC forms at the extremes and signals directional acceptance.
| POC role | In balance | In imbalance |
|---|---|---|
| Target | Mean-reversion towards POC | POC as support/resistance on pullbacks |
| Entry | Fade at VA extremes, POC as take-profit | Entry on retest of session POC |
| Invalidation | Sustained close outside VA | Return and acceptance inside previous VA |
In plain terms — The POC is the session's «most voted» price. On a sideways day you return to it; on a trend day it stays behind or forms at the top/bottom.
Value Area: boundaries of acceptance
The Value Area delimits the band where the market traded ~70% of volume. Operationally:
- VAH (Value Area High) — ceiling of acceptance; in balance it is logical resistance.
- VAL (Value Area Low) — floor of acceptance; in balance it is logical support.
- Previous VA — multi-day reference: overlap = balance; gap = possible imbalance.
Example — Session with POC at 4,520, VAH 4,528, VAL 4,512. Price touches VAH at 11:00 and returns towards POC within 30 minutes: valid fade setup in balance. If instead it breaks VAH with volume and forms a new VA above, the fade is invalidated — the market accepts higher prices.
Operational rules per session
| Scenario | Reading | Action |
|---|---|---|
| Open inside yesterday's VA, rotation | Balance | Fade VAH/VAL → POC |
| Open above yesterday's VAH, no re-entry | Bullish imbalance | Long on pullback to LVN or forming POC |
| Open below yesterday's VAL, no re-entry | Bearish imbalance | Short on rally to LVN or forming POC |
| Session POC = VAH or VAL | Directional acceptance | Follow trend, do not fade |
| Multi-day converging POC | Multi-session balance | Range trade until breakout |
Frequent mistake — Using yesterday's POC as an automatic entry today. The POC makes sense in regime context: in imbalance yesterday's POC is often far from current price and is not a magnet until the market returns to balance.
Multi-period POC and VA
Steidlmayer and Dalton extend references beyond the session:
| Period | Operational use |
|---|---|
| Current session | Intraday levels, day type |
| Yesterday | Open vs previous VA comparison |
| 3–5 sessions | Composite profile, multi-day POC |
| Week/month | Macro balance, value migration |
Card — POC and VA
- POC: session centre of gravity; target in balance, pivot in imbalance.
- VAH/VAL: acceptance boundaries; fade in balance, breakout in transition.
- VA overlap: multi-day balance signal.
- Regime: always verify equilibrium vs imbalance before trading.