Power of Three
- Indicadores
- Suvashish Halder
- Versión: 1.0
The "Power of Three" (PO3) is a concept developed by the Inner Circle Trader (ICT) to illustrate a three-stage approach used by smart money in the markets: Accumulation, Manipulation, and Distribution.
ICT traders view this as a foundational pattern that can explain the formation of any candle on a price chart. In simple terms, this concept is effective for any time frame, as long as there's a defined start, highest point, lowest point, and end.
Understanding the Bullish Candle Development in PO3 Terms:
- Candle Open: The initial price before any significant market movement.
- Accumulation: Buyers gather positions near the opening price.
- Manipulation: Price moves to create short liquidity (for sellers) while weakening long liquidity (for buyers).
- Range Expansion: A surge in price movement as the imbalance unfolds.
- Distribution: Buyers start closing positions, and new buy orders come in.
- Candle Close: The price level at the end of the period, following the movement.
The same PO3 stages apply to a Bearish candle but in reverse, where sellers dominate.
Using the Higher Timeframe (HTF) PO3 Indicator
The HTF PO3 Indicator provides a real-time look at how the current higher timeframe candle is developing. With this tool, you can:
- Track the candle’s Open, High, and Low on a lower timeframe with high accuracy.
- Know when it’s expected to Close (on timeframes shorter than a day).
- See its Low to High range to get a clearer picture of market behavior on lower timeframes.
- Trade PO3 with more confidence, without needing multiple chart layouts.
This tool is particularly helpful for building a structured trading approach and identifying key institutional levels in the market.
Wishing you all the best and happy trading! Please note that support is not available for free products.
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