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How-To Guide
2026-04-05

Interpreting Signals

Learn how the signal scanning logic works and how to interpret the BUY signals generated by POC Scanner.

POC Scanner scans thousands of symbols looking for structurally bullish setups on the weekly timeframe. Understanding the logic behind these signals helps you make better trading decisions.

What Makes a Signal?

A BUY signal requires all of these conditions:

  1. Price above POC — the symbol trades above its weekly Point of Control, indicating bullish bias
  2. HVN support below — a High Volume Node below current price provides a volume-based floor
  3. No LVN below — no Low Volume Node gaps between current price and the HVN support
  4. First LVN above — the nearest LVN above price becomes the take-profit target
  5. No HVN overhead — no additional High Volume Nodes between price and the target

Why These Conditions Matter

ConditionPurpose
Price above POCFilters for institutional buying interest
HVN support belowEnsures a real volume-based floor exists
No LVN belowPrevents gap risk to the downside
First LVN aboveClean target in low-volume air pockets
No HVN overheadRemoves resistance between entry and target

Reading the Results

FieldMeaning
SignalBUY
TPTake-profit target (first LVN above)
POCWeekly Point of Control
VAH / VALValue Area boundaries for context

Trading Signals

Entry

  • Limit order near POC or VAH pullback for better entries
  • Momentum entry when price breaks above a consolidation near POC

Stop Loss

  • Place stops below the HVN support zone
  • A close below the weekly POC invalidates the signal

Take Profit

  • First LVN above is the initial target
  • For extended moves, trail stops using rising VWAP or POC

Limitations

  • Weekly timeframe — multi-week to multi-month setups, not day trades
  • Bullish only — only BUY signals are currently detected
  • Always use your own risk management — position sizing is essential
  • Combine with broader context — market regime, sector strength, fundamentals

No signal is 100% reliable. Use signals as a screening tool, not a trading system.