Recently, many traders still have some confusion about the concept of POI, but in fact, this thing is super useful in practice. The full form of POI is Point of Interest, simply put, a specific area on the chart where the price often has a strong interactive response—possibly a rebound, a breakout, or liquidity absorption.
How are these interest points formed? Usually by previous abnormal price movements. For example, a large candle with a long wick, a price gap, a fakeout, obvious supply and demand zones, or even market maker entry points. The price is like being magnetized by these POIs, always returning to revisit these areas, either rebounding or breaking through.
The most common types of POIs include: breakout candles (strong candles with high volume indicating genuine liquidity entering), rejection candles (long wicks, obvious price rejection, such as hammer or shooting star), liquidity gap areas (zones with insufficient price interaction, which are usually filled), and supply/demand zones (areas with dense buy and sell orders).
How to profit from them? The first step is to wait for the price to return to the POI area, while paying attention to reversal signals—reversal candles or breakout of price structure. Stop-loss should be set 10-15 points above or below the POI. I like to combine POI with other indicators, for example, if the price approaches the POI and RSI is already at 70 (overbought), that’s a good sell signal. After entering, target the next resistance level or previous high/low.
Here’s a practical example: XRP on the 15-minute chart, a huge bullish candle pushed the price from 1.9500 directly to 2.0000, marking the POI zone at 1.9500-1.9600. Two hours later, when the price returns to this zone, it’s worth paying close attention. If a hammer reversal candle appears at 1.9550, that could indicate traders are interested in this area, increasing the likelihood of a rebound. In this case, you can expect the price to attempt to push toward the previous high of 2.0000, while being mindful of the risk at 1.9450 below.
Combining POI with other analysis tools yields better results. First, confirm the overall trend—whether bullish or bearish—and let the POI serve you rather than go against it. EMA 50/200 are also very useful—if the POI is above the moving averages, it acts as support; below, it acts as resistance. Don’t forget volume—if a rebound from the POI is accompanied by high volume, that’s an additional confirmation signal.
The most common mistake is rushing in without confirmation, ignoring the overall market trend, not managing risk properly, or using POI on inappropriate timeframes. This method works best on the 15-minute chart for very short-term trading. The key is patience—wait for the price to truly revisit these interest points, and only act when combined with other signals.