Hook
More breakout videos from this creator.
How can I identify a valid POI? I don't know how to identify a valid POI. Worry not, because I'm going to show you right now. So guys POI stands for points of interest. Some people call it order blocks. And this example right here is a valid POI because as you can see, it reacted from it. But what are the rules for the valid POIs? So the first rule that you need to remember is that for a valid POI, it needs to be the opposite color candle of the move that is going on right now. So in this case, my bullish candles are blue and my bearish candles are white. So if I want to identify a bearish POI, so basically a POI where price will tap into it and then go down, I will need to identify a bullish candle. So the opposite color candle of the move. So in this case, my bullish candle that is my blue candle will be my POI. According to my rules, I cannot identify a bearish candle for a bearish POI. To be the opposite. Then it needs to be connected to a fair value gap or an imbalance. So in this case, I zoomed in and you see that this POI, so this candle is connected to this little fair value gap that you see right here. So the condition is met. Then it needs to be unmitigated. So this means that price never came back to tap into the POI. So the POI is clean, it's fresh, there's nothing in it. So as you can see, by the time we identified this POI, it was indeed unmitigated because price never came back into the POI. But eventually the goal is for the price to mitigate the POI and then have a reaction and an entry from that POI. But if it's already mitigated, like right here, you can no longer use it again for a valid POI to be valid, it's only a one-time use. And the last rule, it can be up to three same color consecutive candles. So what does that mean? So for example, okay, we have three blue candles, as you can see, three blue candles. And we can take them all as our POI. Why? It's because they're still connected to this little imbalance that we have right here. They're all consecutive and the same color. So those candles count as a POI. Can see, indeed, this candle, if you extend it, it perfectly and incredible reaction. So when you have the opportunity to take more than one candle, up to three, you should do it because if, for example, took the extreme one, I would have missed this reaction.