03/11/2023
Power of Three ( PO3 ) is one of the many concepts introduced by the Inner Circle Trader and inspired by Larry Williams.
The PO3 represents a three staged Smart Money campaign: Accumulation, Manipulation, and Distribution.
ICT traders assume that this pattern represents how any candle is built.
โThis is applicable to every time measurement, as long as you have a beginning time, the highest value, the lowest value, and an ending in terms of measuring time.โ
Consider the development of a Bullish Candle over Time:
โ Candle Open (initial value price, prior to dynamic imbalance)
โ Accumulation of longs around the opening price
โ Manipulation where short liquidity is engineered and long liquidity is neutralized
โ Range Expansion (dynamic price imbalance)
โ Distribution pairing long exits with pending buy interest
โ Candle Close (ending value price, post dynamic imbalance)
The same goes for the development of Bearish Candles, in reverse.