Why Yesterday's Point of Control MattersUS 500CAPITALCOM:SPX500CapitalcomMost traders begin the session by marking out the previous day's high and low. Those levels often provide a useful framework for the day ahead, highlighting where momentum accelerated or where buyers and sellers previously lost conviction. Yet another reference point often receives far less attention despite representing where the market spent most of its time doing business. The Prior Day's Point of Control (PoC) , derived from the Session Volume Profile, identifies the price at which the greatest volume traded during the previous session. It isn't a buy or sell signal, nor should it automatically be treated as support or resistance. Instead, it provides a useful reference point that can help traders understand where the market previously found the greatest agreement on price. Three observations are particularly worth paying attention to. Strong trends often see value move higher One of the more interesting characteristics of strong trends is that they aren't driven purely by price. As markets continue to trend, the Point of Control will often migrate higher from one session to the next. The market isn't simply pushing to higher prices before immediately rejecting them. Instead, the greatest concentration of trading activity is gradually shifting upwards as buyers and sellers become increasingly willing to transact at higher prices. This doesn't guarantee the trend will continue, but it does suggest that the market is accepting those higher prices rather than merely visiting them. US500 Five-Minute Candle Chart Past performance is not a reliable indicator of future results The recent S&P 500 provides a good example. As the market continued to rally, each session's Point of Control gradually stepped higher. Rather than repeatedly returning to previous value areas, the market established new areas where the majority of business was conducted, consistent with the strength of the underlying trend. The prior day's Point of Control creates a useful reference Once the session closes, yesterday's Point of Control becomes a level worth carrying forward into the next trading day. Not because the market must react there, but because it highlights an area where a significant amount of business was previously transacted. Whenever price returns to that level, traders have an opportunity to observe whether the market still considers it an area of value or whether sentiment has shifted. US500 Five-Minute Candle Chart Past performance is not a reliable indicator of future results Here, the Session Volume Profile identifies the price where the greatest volume traded throughout the session. While the profile itself disappears once the day has finished, the Point of Control remains a useful reference point that can be projected into the following trading session. Watch the reaction, not the level Perhaps the biggest mistake traders make is assuming the Prior Day's Point of Control should automatically act as support or resistance. Like every technical level, its value comes from how the market behaves around it rather than from the line itself. Sometimes price will trade straight through it without hesitation, signalling that yesterday's area of value is no longer particularly relevant. On other occasions, the market will repeatedly struggle to establish itself above or below the level, suggesting participants are once again making decisions around the same price. Repeated reactions often become far more meaningful than the first touch. US500 Five-Minute Candle Chart Past performance is not a reliable indicator of future results In this example, price repeatedly tested the Prior Day's Point of Control from below before failing to establish acceptance above it. Each rejection reinforced the level as an area where selling pressure re-emerged , providing traders with a useful intraday reference rather than a mechanical trading signal. A reference point rather than a prediction The Prior Day's Point of Control won't identify every turning point, nor should it be expected to. Its real value lies in providing additional context. Like any technical tool, the Point of Control can provide additional context when considered as part of a broader analytical framework.. Used in isolation it is simply another horizontal line. Used alongside price action, it becomes a practical way of identifying where yesterday's auction may still be influencing today's decisions. Disclaimer: This is for information and learning purposes only. 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