Disliked{quote} POC's are dependent on the duration of your distribution. As you can see on my two charts I gave with my posting, the long term distribution (864 days time span) shows the 3092 as the POC of a very high volume area (also the POC of the whole distribution is 3213, but they have nearly same underlying volume). When we have a look at the more near-term data of 160 days, the mentioned 3092 is in no way a POC. It is a "no-business-zone". Traders could not agree on that price zone and they simply pushed the price deeper until agreement was reached....Ignored
We can differentiate between long-term distribution curves, mid-term and short term.
All are prone to the concept of "market memory". Basically it means: things far back in the past may have a meaning for the present, but things not so far in the past have a higher meaning for further developments.
So when looking at long time distributions one has to keep in mind, that for example some POC's out of the past may be "meaningless" now in the present.
Good indication for data that got meaningless is, when high volume zones of the past suddenly get "no-business-zones" with fresh data. Most of the time in currencies trading such behaviour is the result of fundamental shifts.
We got that fundamental shift with the end of QE3. Back in September even the weaker trader could have figured out, that the FED was more than willing to abandon QE completely. That was the point of recognition one can see in the charts between roughly 3100 and 2900.
The 2900 was round about retested in October but got rejected.
