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What is Naked POC/VAH/VAL in Market Profile?

• By MarketProfileHQ Team
What is Naked POC/VAH/VAL in Market Profile?

Naked POC, VAH, and VAL are important concepts in Market Profile that refer to these levels from previous sessions that remain relevant when current price hasn’t yet established new levels. Understanding naked levels helps you identify key reference points for trading on Indian exchanges.

What is Naked POC?

A naked POC is a Point of Control from a previous session that remains “naked” or exposed because the current session’s price hasn’t yet traded through that level, making it a key reference point.

Characteristics of Naked POC

Naked POC Features:

  • Previous session POC: POC from previous session
  • Not yet traded: Current price hasn’t reached it
  • Key reference: Important reference level
  • Price magnet: Price likely to return
  • High probability: High-probability trading level

Why Naked POC Matters

Naked POC is Important Because:

  • Unfinished business: Market hasn’t revisited that level
  • Price magnet: Price tends to return to POC
  • Reference level: Key reference for trading
  • High probability: High-probability reactions
  • Institutional reference: Institutions use it as reference

What is Naked VAH?

A naked VAH (Value Area High) is the upper boundary of the Value Area from a previous session that remains relevant because current price hasn’t yet traded above it.

Characteristics of Naked VAH

Naked VAH Features:

  • Previous session VAH: VAH from previous session
  • Not yet broken: Current price hasn’t broken above
  • Resistance level: Acts as resistance
  • Key reference: Important reference level
  • Breakout target: Potential breakout level

Why Naked VAH Matters

Naked VAH is Important Because:

  • Resistance level: Strong resistance level
  • Breakout significance: Breaking it is significant
  • Reference point: Key reference for trading
  • High probability: High-probability reactions
  • Target level: Potential target level

What is Naked VAL?

A naked VAL (Value Area Low) is the lower boundary of the Value Area from a previous session that remains relevant because current price hasn’t yet traded below it.

Characteristics of Naked VAL

Naked VAL Features:

  • Previous session VAL: VAL from previous session
  • Not yet broken: Current price hasn’t broken below
  • Support level: Acts as support
  • Key reference: Important reference level
  • Breakdown target: Potential breakdown level

Why Naked VAL Matters

Naked VAL is Important Because:

  • Support level: Strong support level
  • Breakdown significance: Breaking it is significant
  • Reference point: Key reference for trading
  • High probability: High-probability reactions
  • Target level: Potential target level

How Naked Levels Work

Price Magnet Effect

Naked Levels Act as Magnets:

  • Price returns: Price tends to return to naked levels
  • Unfinished business: Market wants to revisit
  • Reference points: Key reference for trading
  • High probability: High-probability reactions

Trading Implications

Naked Levels Provide:

  • Entry points: Enter trades near naked levels
  • Exit points: Exit trades at naked levels
  • Support/resistance: Use as support/resistance
  • Target levels: Use as profit targets

Trading with Naked Levels

Strategy 1: Naked POC Trading

Setup:

  1. Identify naked POC from previous session
  2. Wait for price to approach
  3. Enter on reaction
  4. Target Value Area

Entry:

  • Enter when price reacts at naked POC
  • Confirm with structure
  • Use tight stops
  • Target Value Area

Exit:

  • At Value Area
  • When momentum fades
  • At stop loss
  • On reversal

Strategy 2: Naked VAH Trading

Setup:

  1. Identify naked VAH from previous session
  2. Wait for price to approach
  3. Enter on rejection or breakout
  4. Target extension

Entry:

  • Enter on rejection (short) or breakout (long)
  • Confirm with volume
  • Use tight stops
  • Target extension

Exit:

  • At extension target
  • When structure breaks
  • At stop loss
  • On reversal

Strategy 3: Naked VAL Trading

Setup:

  1. Identify naked VAL from previous session
  2. Wait for price to approach
  3. Enter on bounce or breakdown
  4. Target extension

Entry:

  • Enter on bounce (long) or breakdown (short)
  • Confirm with volume
  • Use tight stops
  • Target extension

Exit:

  • At extension target
  • When structure breaks
  • At stop loss
  • On reversal

When Naked Levels Become “Clothed”

What Makes Levels “Clothed”

Levels Become Clothed When:

  • Price trades through: Current price trades through the level
  • New levels established: New session establishes new levels
  • Level no longer relevant: Level no longer acts as reference
  • New structure: New market structure replaces old

Trading Implications

When Levels Become Clothed:

  • Less relevant: Level becomes less relevant
  • New levels: Focus on new levels
  • Structure change: Market structure has changed
  • Adapt: Adapt to new structure

Common Patterns

Naked POC Above Current Price

Pattern:

  • Previous day POC above current price
  • Price hasn’t reached POC
  • POC acts as resistance/target
  • Price likely to return

Trading:

  • Watch for price to approach POC
  • Enter on reaction
  • Target POC or extension
  • Use POC as reference

Naked POC Below Current Price

Pattern:

  • Previous day POC below current price
  • Price hasn’t reached POC
  • POC acts as support/target
  • Price likely to return

Trading:

  • Watch for price to approach POC
  • Enter on reaction
  • Target POC or extension
  • Use POC as reference

Naked VAH/VAL Patterns

Pattern:

  • Previous day VAH/VAL not yet traded
  • Acts as support/resistance
  • Breakout/breakdown significance
  • High probability reactions

Trading:

  • Watch for approach to VAH/VAL
  • Enter on reaction or breakout
  • Target extension
  • Use as key reference

Common Mistakes

1. Ignoring Naked Levels

Problem:

  • Not identifying naked levels
  • Missing key references
  • Poor entries/exits
  • Lower probability trades

Solution:

  • Always identify naked levels
  • Use as key references
  • Trade with context
  • Improve probability

2. Trading Naked Levels Blindly

Problem:

  • Trading without context
  • Not considering structure
  • Missing other factors
  • Poor trades

Solution:

  • Always check context
  • Consider market structure
  • Use with other tools
  • Complete analysis

3. Not Updating Naked Levels

Problem:

  • Using old naked levels
  • Not updating references
  • Missing new structure
  • Outdated analysis

Solution:

  • Update daily
  • Use current references
  • Adapt to changes
  • Stay current

Real-World Examples

Example 1: Naked POC Resistance

Setup:

  • Previous day POC: 19,250
  • Current price: 19,230
  • Price approaching 19,250

Analysis:

  • Naked POC above current price
  • Acts as resistance
  • Price likely to react
  • High probability setup

Trade:

  • Enter short on rejection from 19,250
  • Stop: Above 19,250
  • Target: Value Area or extension
  • Result: Price rejects, target hit

Example 2: Naked VAL Support

Setup:

  • Previous day VAL: 19,200
  • Current price: 19,210
  • Price approaching 19,200

Analysis:

  • Naked VAL below current price
  • Acts as support
  • Price likely to react
  • High probability setup

Trade:

  • Enter long on bounce from 19,200
  • Stop: Below 19,200
  • Target: Value Area or extension
  • Result: Price bounces, target hit

Tools for Naked Level Trading

Professional naked level trading requires:

  • Previous session level tracking
  • Real-time level identification
  • Historical level analysis
  • Easy level visualization

Vtrender provides professional Market Profile tools with previous session level tracking for Indian exchanges.

Best Practices

  1. Always identify: Always identify naked levels
  2. Use as reference: Use as key reference levels
  3. Check context: Always check market structure
  4. Update daily: Update levels daily
  5. Trade appropriately: Trade with proper strategy

Conclusion

Naked POC, VAH, and VAL are important Market Profile concepts that identify key reference levels from previous sessions. By understanding these levels and how to trade them, you can identify high-probability trading opportunities on Indian exchanges.

Start identifying naked levels with Vtrender’s professional Market Profile tools and improve your trading on NSE and BSE.

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