Definition
#Measures how close current price is to the previous complete UTC day's POC bucket, ignoring whether price is above or below it.
Formula & calculation
#Use the signed Previous Day POC Distance calculation, then apply
abs(signed_distance).Units & range
%. 0 means price is inside the previous-day POC bucket. Higher values mean farther away, regardless of side.
Interpretation
#This is the cleanest closeness filter for POC. It removes above/below direction and answers only: how near is price to yesterday's main volume bucket?
Practical usage
#Use
lte 0.30 to scan near POC without caring whether price approaches from above or below.Common mistakes
#Frequent interpretation traps and misuse patterns to avoid when applying this metric.
- Using absolute distance when direction matters. It cannot tell whether price is above or below POC.
- Reading small distance as a trade signal without current volume or imbalance confirmation.
- Comparing raw bucket width across symbols. Buckets are adaptive to each instrument's range.