ICT Sessions & ModelsIntermediate

Power of Three (AMD)

What ICT's power of three (PO3) and the AMD model mean: accumulation, manipulation and distribution within a day or session, with examples and limits.

Library categories

What it means

Power of three describes a candle or session in three phases: accumulation (a quiet range near the open), manipulation (a false move against the direction) and distribution (the main move). AMD is the same idea.

On a daily candle, a bullish PO3 looks like an open, a low wick below it, then a close near the high.

Why traders use it

The model connects session ranges, Judas swings and the day's range into one story. It helps decide which side of the range to watch for the manipulation leg.

Chart examples

Accumulation, manipulation, distribution

AccumulationManipulationDistributionOpen
A quiet range near the open, a dip below it, then the main move up.Schematic diagrams drawn to explain the idea; they are not market data.

How to identify it objectively

  • 1Mark the open (midnight or session open).
  • 2Accumulation: a tight range around the open.
  • 3Manipulation: a break of that range against the bias, followed by a reclaim.
  • 4Distribution: the expansion in the bias direction.

Bullish use

  • 1Range near the open.
  • 2Drop below the range (manipulation).
  • 3Expansion up through the open (distribution).

Bearish use

  • 1Range near the open.
  • 2Rally above the range.
  • 3Expansion down through the open.

What confirms it

  • Manipulation reclaimed quickly.
  • Expansion with displacement.

What invalidates it

  • The "manipulation" leg keeps going: it was distribution.

How a hypothetical setup is built

Entry

After the manipulation leg is reclaimed, on a confirmation close.

Stop

Beyond the manipulation extreme.

Target

Expansion toward the day's draw on liquidity.

A hypothetical illustration of how the concept is turned into a plan, not a recommendation. Practise it on a paper account first.

Historical testing

Not tested on The Tradeskill. Phase boundaries need exact rules before testing.

Limitations: when it fails

  • Easy to label after the fact, hard in real time.
  • Many days do not follow three clean phases.
  • Requires a reliable bias.

Knowledge check

Pick an answer to see the explanation. Nothing is saved.

What does AMD stand for?

1. What does AMD stand for?

In a bullish PO3, manipulation goes…

2. In a bullish PO3, manipulation goes…

Main risk of the model?

3. Main risk of the model?

Practise it risk-free

Open the free chart, use replay to go back in time and look for this concept candle by candle with $20,000 in virtual money.