ICT Forex - Market Maker Primer Course - Accumulation - Manipulation - Distribution

Daniel · March 28, 2024, 4:22pm

Notes

The lesson focuses on the ICT concept of accumulation, manipulation, and distribution, also known as the Power Of Three (PO3).
The ICT Power Of Three concept:
- Accumulation:
  - Initial phase where positions are built.
  - In a bullish market, long positions are accumulated around or below the opening price.
  - In a bearish market, short positions are accumulated around or above the opening price.
- Manipulation:
  - Following accumulation, market manipulation occurs to engineer liquidity.
  - In a bullish market, manipulation often involves a temporary drop below the opening price to induce selling, creating liquidity for smart money to buy at a lower price. This also neutralizes long liquidity by hitting stop-loss orders of long traders.
  - In a bearish market, manipulation often involves a temporary rise above the opening price to induce buying, creating liquidity for smart money to sell at a higher price. This also neutralizes short liquidity by hitting stop-loss orders short traders.
- Distribution:
  - Final phase where positions are exited.
  - In a bullish market, distribution occurs as prices rise and smart money sells to those buying above previous highs.
  - In a bearish market, distribution occurs as prices drop and smart money buys from those selling below previous lows.
The concept is applicable to all markets and time frames.
Understanding these phases helps traders anticipate market moves.

Accumulation, Manipulation, Distribution - Power Of Three

Accumulation, Manipulation, Distribution (Power Of Three) - Bullish Conditions

Accumulation, Manipulation, Distribution (Power Of Three) - Bearish Conditions

Accumulation, Manipulation, Distribution - Power Of Three Example