Price ActionAdvanced

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

  1. Pick a timeframe

    Start on a higher timeframe.

  2. Mark candidate zones

    Mark order blocks that price may revisit.1

  3. Rank them

    Be patient — the best setup may only come at a stronger zone further away.2

  4. Wait for price

    Do nothing until price reaches the zone.

  5. Look for a reaction

    Wait for a clean rejection at the zone before entering.2

  6. Define risk

    Set a stop beyond the zone; the concept involves probability, not certainty.1

Worked examples

Example 1 — Two zones

Wait for 200

Hypothetical: a weak zone at 210 and a stronger order block at 200.

Example 1 — Two zones — calculation
Weak POI210
Strong POI200

The first zone failed; the real setup came from the stronger zone further down.2

Example 2 — Rejection

+15

Hypothetical long at 201 after a rejection, stop 196, exit 216.

Example 2 — Rejection — calculation
Risk5
Result+15

The trader held off until price clearly rejected the zone.2

Example 3 — Zone fails

−5

Hypothetical: price breaks through 200 to 190.

Example 3 — Zone fails — calculation
Entry201
Stop196

The concept involves probability, not certainty.1

POI vs entry signal

AspectPoint of interestEntry signal
What it isA zone to watchA reason to act
TimingMarked in advanceAt the moment
Needs confirmationYesIs the confirmation
RiskZone may failSignal may fail

Where traders use it

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

  1. Too many zones

    Keep a few strong ones.

  2. Entering on touch

    Wait for a reaction.

  3. No stop

    Define risk.

  4. Ignoring the trend

    Check the bigger picture.

Check your understanding

Test yourself before moving on. Each answer comes with an explanation.

Q1A POI is best described as
Q2Risk 4, target 12. Risk-reward =

Key points to remember

  1. A POI is a zone marked in advance.
  2. It is often an order block or FVG.
  3. It needs a reaction before acting.
  4. It is subjective.
  5. It is probability, not certainty.

Frequently asked questions

Is a POI an order type?

No, it is a zone.

How many POIs?

Usually a few strong ones.

Do POIs always work?

No.

Further learning

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.

  1. CMC Markets. Smart money concept explained (opens in a new tab) Checked .
  2. 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.