POI (Point of Interest) and Entry Framework

In SMC, a Point of Interest (POI) is the specific zone where you expect price to react. It is not a signal — it is a location. The signal comes when price reaches the POI and shows the behavior you anticipated. Separating these two ideas is what separates disciplined SMC traders from gamblers.

What qualifies as a POI

A POI is any zone where smart money likely left footprints. Common POIs:

• Order blocks: the last opposite candle before a strong move
• Fair Value Gaps: imbalances left by aggressive impulses
• Liquidity pools: equal highs/lows, old session extremes, round numbers
• Premium/discount extremes: the edges of a clearly defined range

The best POIs stack multiple elements. An order block sitting inside the discount zone, containing an FVG, near equal lows, is a far stronger POI than any single element alone.

The entry framework

Once you have a POI, you do not trade it blindly. You follow a process:

1. Identify the POI on the higher timeframe

Mark the zone clearly. Decide which direction you would trade if price arrives.

2. Set alerts, then step away

Do not watch price drift toward the POI. Set an alert at the edge and let the market come to you. Patience is the edge.

3. Drop to a lower timeframe

When price reaches the POI, switch to a lower timeframe. This is where you hunt for confirmation.

4. Wait for a shift in structure

Look for a CHoCH — a break of the recent minor structure in your desired direction. This tells you the reaction is happening, not just hoped for.

5. Look for confirmation inside the POI

A small order block, an FVG, or an engulfing candle on the lower timeframe. The more confirmations, the higher the probability.

6. Enter with defined risk

Place your stop beyond the POI — below a bullish order block, above a bearish one. If that level breaks, the setup is invalid.

7. Target the next liquidity pool

Your target is not arbitrary. It is the next obvious level where stops rest — equal highs, old session extremes, or the opposing side of the range.

Two entry styles

• Confirmation entry: wait for the lower-timeframe CHoCH, then enter on the pullback after it. Slower, safer, slightly worse price.
• Limit entry: place a limit order at the far edge of the POI with a stop beyond it. Better price, but you may get filled before confirmation and stopped if the POI fails.

Most beginners should start with confirmation entries. They teach patience and filter out fake reactions.

What kills POI trades

• Anticipation: entering before price reaches the POI because "it looks like it's going there"
• Skipping the lower timeframe: entering on the higher timeframe without confirmation
• Moving stops: widening the stop when price approaches invalidation
• Ignoring bias: taking a bullish POI trade against a bearish higher-timeframe trend

The mental model

Think of a POI as a question: If price comes here, what would I expect to happen? You do not commit until price answers. This mindset keeps you reactive rather than predictive, and it is the core of consistent SMC execution.

A clean POI plus a disciplined entry framework is the difference between a trader who偶尔 catches a good move and one who consistently harvests them.