[Music] how's it going everyone this video is going to be over ict's power of three or accumulation manipulation and distribution we'll first briefly go over what open high low close and open low high close is before jumping into what the power of three is how to identify it and some examples now before we begin the most important part is to have some higher time frame order flow or Drw on liquidity there has to be some sort of narrative or you are just trading patterns so what is open high low close and open low high close open high low close and open low high close just refer to the open low high and close of a higher time frame candle so for instance if this is the daily candle and this is the intraday price action price opens puts in a low makes a high and then closes similarly ly down here price opens makes a high puts in a low and then closes now the goal is to catch the expansion move or the bulk of the intraday range and that is where the power of three comes in so the power of three or AMD refers to accumulation manipulation and distribution now accumulation is a range or a consolidation now what this does is creates buy stops above old highs and sell stops below old lows now when we enter manipulation it is a false breakout outside of this range what this does is stops out any Longs entering during accumulation as well as induces breakout sellers into the market then price distributes higher and completes that power of three so you can see here accumulation manipulates so what this does is induces breakout buyers and run shorts out of their positions and then distributes lowers so let's go ahead and overlay this on the last example so here you can see we have accumulation manipulation which stops out anyone long in here as well as sellers are going to enter the market playing this breakout and then price reverses and distributes higher creating the daily range similarly down here price is consolidating any early shorts gets stopped out any breakout buyers enter the market then price reverses and distributes lower so how and when do I look for entries using the power roof 3 well there are two ways I look for entries here the first would be within the manipulation I'm going to be looking for reversal patterns here in the manipulation looking to catch this whole distribution however if I miss this or do not like to trade this I will be looking for a continuation entry in this distribution so going back to our example here for these Longs I could be looking for a reversal here within the manipulation or looking for a continuation pattern here looking for higher prices similarly down here I could be looking for sells on on this reversal here or looking to trade this continuation lower so let's hop into the chart and look at a few examples of this so here we are on the charts and the first thing I want to talk about is this concept is fractal so I can use it on the lower time frames as well as the higher time frames we are first going to go over some examples on the lower time frame and then work our way to the higher time frames and the intraday profile so if you notice here we have New York open making this move up and then all the way back down so marking out this morning's low let's see what happens once price takes this low so you can see price took this low and we are creating a range or a consolidation so let's go ahead and Mark this out with a green box so now what is happening here liquidity is being built Above This high and above this low so if I'm looking for price to continue lower I'd like to see manipulation out of this side of the range to go lower if price is going to reverse and go back higher I'd like to see it manipulate down first and then distribute higher so let's see what happens so here you can see we get an aggressive move down which is out of the range sweeping this low and then aggressively back into the range here so this would be our deviation from the range or our manipulation so now from here I'm going to be looking for an entry long however I'm not looking for a market structure shift because we would need to break this high up here so what I can do here is look for for an inversion or I can also look for the Box setup which would be taking this previous body's low over here so now what I'd look for is price to reach into this inversion now that it is closed over my stop on this low and let's say I'm looking for 2 R and there we go we get our accumulation manipulation and let's go ahead and remove this so we can visualize the distribution which is here so you can see that is our power of three or our accumulation manipulation and distribution so here we are on the 5 minute chart moving up from the one minute chart and take a moment and look at this price action and what do you see now you might see the failure swings right here on this high and we have sells side liquidity resting right here so let's see what happens here as price continues now if you notice we have a consolidation right here and we are leaving this range aggressively we sweep this low and now we get aggressive movement back into this range so we have our accumulation our manipulation which not only took the lows from our consolidation here but also sells side liquidity here and so now what can we anticipate we can anticipate distribution or a move up to these failure swings so looking at it where could we get an entry well we have an inversion right here so looking to take an entry here my stop on this low and then my target on this High let's see how this works out and it was pretty messy price action but you can see that we do in fact get our distribution above these old highs in this example we will be taking a look at the power of three for the daily candle or anticipating the Open high low close or open low high close so here we are just after midnight let's go skip forward to the London session so you can see as we're entering the London session here what do we have right here we have a consolidation range now what happens during London we're getting an aggressive move down is that me with an aggressive agressive move up yes we put in a down close candle here close above it retest it here and are moving higher so this is our manipulation so what can we anticipate we can anticipate distribution higher into the end of London and New York session and if this is correct this will be the manipulation of the daily candle and create a wick so here we start to move higher and there is our New York open and we move higher and higher here so you can see London sets the low of day here after manipulating the Asian range and then we distribute higher through the New York am session and zooming out and letting this continue until the end of day you can see we put in an open low High close our London was the manipulation creating the wick of the daily candle and then we got the distribution or the expansion of the daily candle so let's take a look at our next example once again using the daily candles power of three so here we have midnight open let's go to our London session so here we are in London session and what do you notice about this price action here all we did was consolidate so let's go ahead and Mark that out as our ACC accumulation What's Happening Here in London is we are manipulating so let's see if this is met with an aggressive move back into the range because if we fail to displace back into the range we're likely to go lower and here you can see we get our accumulation manipulation we aggressively displace out and back into the range so here is our manipulation and now what can we anticipate distribution higher so looking for distribution higher here so let's let this play out and see what happens and there you go you can see we get our distribution higher so once again looking back we have accumulation of the Asia range London manipulation and then distribution into the New York open however at the New York open we do reach into this new day opening Gap so let's go ahead and Mark that out now let's drop down to a lower time frame and see if we can spot another AMD so down here on the one minute chart here is our new day opening Gap and the consequent encroachment of it what do we notice about the price action prior to the New York open here it is just consolidation right then what do we have we have an aggressive move out of the range here now at this point we're still respecting the New York opening price and this down close candle so I'd want to see further displacement down to confirm this idea so here we get that aggressive have moved down now so what can I anticipate some form of distribution lower now some of you might be asking how do I know how far this distribution is going to go and that is generally when I like to project the manipulation so here I would be projecting from this low to this high is that's the low that made the manipulation move and it's more visible on the 30 second chart so we will drop down to that so you can see this is the low that made the new high before we reversed so going back to the 1 minute chart this gives us some targets for this distribution so here we have the 2 to 2. 5 and then our 4 to 4. 5 so from here do we have any PD arrays that line up with that yes we have some equal lows right here and then zooming out we have that London manipulation that lines up with the fourth standard deviation so let's see how this plays out so we hit our first standard deviation get a retracement to an up close candle we go lower into the 2 to 2.
5 standard deviations and there we just go sweep those lows and then letting this speed up you can see we put in more equal lows here leaving the London low and then there we take the London low into this area here one thing I'm going to go over quickly is many people struggle to find the consolidation instead of focusing on the consolidation just focus on where there is aggressive price action out and back into a range so for example here after we hit this London low let's see what happens here we get an aggressive move down and then back into what range right here I have now identified this consolidation and then here is the manipulation so I'd want to see distribution Above This high and possibly up higher letting this play out you can see we get aggressive move over this high and then now we get an aggressive move back into this range so now what is happening let's zoom in a little we just identified the aggressive price action here where is the aggressive price action here right there now we can identify this consolidation and then where would we want the distribution lower below this low and if we're going to get a continuation lower what is the low that made this high right there so let's see how this one plays out and you can see how we had accumulation manipulation we do distribute over this old high however when we displace back into this range we enter a new accumulation manipulation distribution and this one is going with the higher time frame Trend and the whole point of this segment of this video is if you struggle to find the consolidations focus instead on the manipulations and then identify the consolidation range in which this manipulated outside of so here we are with our last example and let's move towards our lenon session to see what happens here we enter our London session now if you haven't already identified the accumulation let's take a look at the manipulation and then work backwards so here you can see we get an aggressive move out and then back in So marking this out and we look left where is the range that we manipulated out of right here so here is our manipulation now where is our accumulation we Mark out this range so anticipating distribution where can we anticipate that to distribute to here I can use a projection of this manipulation leg so from this high to the low that made the new high which would be right here and if you can see price went up then down again this is where I would want to see price go to so marking out the 2 to 2. 5 in the fourth standard deviation I'd want to see price reach for these areas so visualizing the distribution I'd want to see price reach or do something like this now what would that mean for the daily candle that would mean that from our open here this is the manipulation of the daily candle which should create a wick and then I'd want to see the daily candle form as it moves lower so let's see what happens and if you know the Box setup you know that a possible entry lies right here when we retest this deviation from the range or the manipulation here we reach into the 2 to 2. 5 standard deviations where we can anticipate a retracement or reversal and you can see how this daily candle is starting to form here we get a retracement back into a fair value Gap and these up Clos candles here and we start to distribute lower and there we reach our 4 to 4.
