Point of InterestPOI
A point of interest (POI) is a price zone a trader has marked in advance — such as an order block or gap — where they plan to look for a trade.
In Smart Money Concepts (SMC), a point of interest (POI) is a price zone a trader marks in advance because they expect price may react there. It is often an order block or a fair value gap. A POI is a plan, not a prediction.
- Category
- Price Action
- Reading time
- 3 min
- Also called
- Area of interest
- Updated
Point of interest in plain words
Smart-money traders often wait for price to come back to an order block, treating it as a zone worth watching.1
Sometimes the better setup only appears once price reaches a deeper, stronger zone.2
What they want to see there is a clear rejection.2
How traders use a POI
Pick a timeframe
Start on a higher timeframe.
Mark candidate zones
Mark order blocks that price may revisit.1
Rank them
Be patient — the best setup may only come at a stronger zone further away.2
Wait for price
Do nothing until price reaches the zone.
Look for a reaction
Wait for a clean rejection at the zone before entering.2
Define risk
Set a stop beyond the zone; the concept involves probability, not certainty.1
Worked examples
Example 1 — Two zones
Wait for 200Hypothetical: a weak zone at 210 and a stronger order block at 200.
| Weak POI | 210 |
| Strong POI | 200 |
The first zone failed; the real setup came from the stronger zone further down.2
Example 2 — Rejection
+15Hypothetical long at 201 after a rejection, stop 196, exit 216.
| Risk | 5 |
| Result | +15 |
The trader held off until price clearly rejected the zone.2
Example 3 — Zone fails
−5Hypothetical: price breaks through 200 to 190.
| Entry | 201 |
| Stop | 196 |
The concept involves probability, not certainty.1
POI vs entry signal
| Aspect | Point of interest | Entry signal |
|---|---|---|
| What it is | A zone to watch | A reason to act |
| Timing | Marked in advance | At the moment |
| Needs confirmation | Yes | Is the confirmation |
| Risk | Zone may fail | Signal may fail |
Where traders use it
Planning
Building a Trading Plan.
Setups
Part of a Trade Setup and Entry Trigger.
Levels
Linking to Support and Resistance.
Patience
Avoiding chasing with Trading Discipline.
Advantages and disadvantages
Advantages
- Encourages planning ahead.
- Reduces chasing.
- Defines where to look.
Disadvantages
- Very subjective.
- Zones often fail.
- Too many zones confuse.
- Can create false confidence.
Going deeper
Read as far as you need. Each level builds on the one before it.
Where POIs come from
Beginner
Order blocks that price might revisit are the classic points of interest.1
Subjectivity
Intermediate
Spotting order blocks, gaps and liquidity zones always involves personal judgment.1
Probability
Advanced
The concept involves probability, not certainty, so a POI needs a reaction and a stop.1
Common mistakes
Too many zones
Keep a few strong ones.
Entering on touch
Wait for a reaction.
No stop
Define risk.
Ignoring the trend
Check the bigger picture.
Check your understanding
Test yourself before moving on. Each answer comes with an explanation.
Key points to remember
- A POI is a zone marked in advance.
- It is often an order block or FVG.
- It needs a reaction before acting.
- It is subjective.
- It is probability, not certainty.
Frequently asked questions
Is a POI an order type?
How many POIs?
Do POIs always work?
Further learning
- Trading Plan
Planning.
- Support and Resistance
Classic zones.
- Trading Discipline
Waiting for price.
Sources
This article is written in our own words. The sources below support the specific facts, rules and figures marked with a number in the text. Links open the original publisher’s page.
- CMC Markets. Smart money concept explained (opens in a new tab) Checked .
- Equiti. Inducement in SMC explained: how smart money traps work (opens in a new tab) Checked .
Educational content, not financial advice. Examples use hypothetical prices and simplified costs; actual fees, margin rules and regulations vary by broker, market and country. We are not affiliated with any publisher linked above. Last reviewed . Report an error or request a source credit.