What is Power of Three (PO3 / AMD)?
The three-phase anatomy of a candle: Accumulation (range near open), Manipulation (false move sweeping stops), Distribution (the true move into the close). Repeats on daily and weekly candles.
Power of Three reads every higher-timeframe candle as a three-act story. Accumulation: price ranges quietly near the open while positions are built (for the daily candle, roughly the London pre-open). Manipulation: a deliberate push in the WRONG direction — the Judas swing — sweeping the stops of early traders (often around the New York open). Distribution: the true move, running from the end of manipulation into the close.
A bullish daily PO3 opens, dips below the open to sweep sellside (manipulation), then rallies through the day to close well above the open — printing a long lower wick. Bearish PO3 mirrors it.
Trading application: establish higher-timeframe bias first, then wait for the manipulation phase to move AGAINST that bias, and enter as the distribution leg begins (after a lower-timeframe break of structure). Stop goes beyond the manipulation wick — the natural invalidation. No manipulation = no trade.