nPOC Levels by Tyler

How it works

The Weekly nPOCs script calculates the Point of Control by dividing price range into 100 volume bins and identifying the price level with maximum trading volume. It tracks these weekly POCs and marks levels that remain untouched in subsequent weeks as naked Points of Control (nPOCs).

Each new weekly POC is compared against previous weeks, with horizontal lines extended to the right of the chart to visualize these significant price levels. The script automatically manages these lines, keeping only the most recent 52 weeks to prevent chart clutter and maintain clear visual representation.

Why it may be useful

Weekly nPOCs provide traders with critical insights into market structure by highlighting price levels with significant historical volume and trading activity. These untouched price zones represent potential areas of market memory where price might react, offering traders strategic entry and exit points.

By visualizing these volume-based support and resistance levels, traders can make more informed decisions about potential trend reversals, breakouts, and consolidation zones. The indicator helps traders understand market dynamics beyond simple price action by incorporating volume profile analysis.

When to explore it

The Weekly nPOCs indicator is most effective in markets with clear trending or range-bound characteristics, where volume profile analysis can reveal meaningful price levels. It works best on higher timeframes like daily and weekly charts, where volume information provides more substantial market insights.

Traders should use this indicator in conjunction with other technical analysis tools to confirm potential trade setups. It is particularly useful for swing traders looking to identify long-term support and resistance levels, and for understanding broader market structure beyond short-term price fluctuations.

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