Market StructureIntermediate#SMC#ICT
Power of 3 (PO3)
P
Definition
A market cycle concept consisting of three distinct phases: Accumulation, Manipulation, and Distribution.
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Concept Diagram
Key Takeaways
1
PO3 describes the three phases of intraday price action: accumulation, manipulation, and distribution
2
Accumulation happens in Asian session, manipulation in London session, distribution in NY session
3
The manipulation phase sweeps liquidity in one direction before the true move in the opposite direction
4
Understanding PO3 gives traders a roadmap for expected intraday price behavior
Practical Example
BTC accumulates quietly in a $500 range during Asian session ($60,000-$60,500). London session manipulates price down to $59,700 sweeping sell-side liquidity. NY session then rallies to $61,500 — the real distribution direction.
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Related Terms
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Wyckoff TheoryA methodology for identifying market phases: Accumulation, Markup, Distribution, and Markdown.
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Inducement (IDM)A minor pullback or structural point designed to 'induce' retail traders to enter too early before a real institutional move.
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Order Block (OB)The last candle in the opposite direction before a strong directional expansion, marking institutional entry points.
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DisplacementA powerful move in price that shows clear institutional intent, leaving multiple Fair Value Gaps behind.
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