Understanding The Difference Between AMD & Po3:

Summary

This video delves into the key differences between AMD (Accumulation, Manipulation, Distribution) and the Power 3 trading strategy. AMD focuses on pattern-based market behavior, manipulating liquidity and human emotions to trigger buy and sell positions, while Power 3 is a time-based model that utilizes open, high, low, and close to identify high-probability setups. The video provides a comprehensive explanation of how these strategies operate, particularly in bullish markets, with a focus on understanding market manipulation, reversals, and fractal behaviors across various timeframes.

Takeaways

• 📊 AMD vs. Power Three: The video explains the difference between AMD (accumulation, manipulation, distribution) and Power Three, focusing on how each concept works within the market.
• 🔄 AMD Process: The stages of AMD are accumulation (price consolidates), manipulation (price triggers liquidity), and distribution (price moves in the intended direction).
• 🧠 Liquidity Manipulation: AMD is designed to manipulate human emotions and liquidity, often tricking traders into the wrong positions.
• 🔍 Smart Money Techniques: Smart money uses the accumulation phase to build orders, manipulating price to reach desired liquidity levels before initiating the distribution phase.
• ⏳ Power Three Explanation: Power Three refers to the Open High Low Close (OHLC) of a candlestick, serving as a time-based framework to hunt trading setups.
• ⏱️ Time-Based Patterns: AMD often occurs at significant times, such as 8:30 or 9:30 market openings, and is crucial to align entries with these times.
• 🌀 Fractal Nature: Both AMD and Power Three are fractal, meaning they can be observed on different timeframes, from daily to minute charts, and within each retracement cycle.
• 📈 High Probability Setups: High-probability trades are more likely when price manipulation ends, confirmed by displacement and price action at key market structures.
• 🚨 SMT Confirmation: SMT (smart money technique) is used to confirm manipulations, such as divergence between similar assets, helping identify valid entry points.
• 🗓️ Daily Candle Power Three: Daily Power Three setups involve accumulation, manipulation, and distribution within a daily candlestick, aligning with market cycles for increased accuracy.

Q & A

What is the primary focus of the video?

The video focuses on the difference between AMD (Accumulation, Manipulation, Distribution) and Power Three, two trading strategies. AMD is pattern-based, while Power Three is time-based.

What is AMD in the context of this video?

AMD stands for Accumulation, Manipulation, Distribution. It is a program within the market algorithm designed to manipulate liquidity and human behavior to entice buyers and sellers.

How does the accumulation phase in AMD work?

In the accumulation phase, the price consolidates, gathering buy stops above the market and sell stops below the market. This creates a pool of liquidity that will be manipulated later.

What happens during the manipulation phase of AMD?

During the manipulation phase, the market engineers liquidity by raiding the sell stops, triggering smart money to pair sell stops with buy orders. This phase is designed to deceive traders and create reversals.

What is the distribution phase in AMD?

In the distribution phase, the market reverses and expands higher, triggering buy stops above the accumulation range. This phase marks the offloading of smart money's positions after manipulation.

What is Power Three in trading?

Power Three is a time-based concept that refers to the Open High Low Close (OHLC) range of a candlestick. It provides a framework to identify trading setups, often used in alignment with higher time frame structures.

How does the fractal nature of AMD and Power Three work?

Both AMD and Power Three are fractal, meaning they can be observed on different timeframes. For instance, within a higher timeframe AMD or Power Three, smaller timeframes may show the same patterns forming repeatedly.

How does Power Three interact with higher time frame structure?

Power Three setups are often aligned with higher time frames, meaning traders should consider the daily, weekly, or even monthly OHLC structure to enhance the probability of successful trades.

What role do significant times, like 8:30 or 9:30, play in Power Three setups?

In Power Three setups, significant times like 8:30 AM and 9:30 AM mark key market moments where price manipulation often occurs. These times are crucial for catching manipulative moves and positioning for distribution phases.

How does the video suggest using SMT (Smart Money Techniques) for trade confirmation?

The video suggests using SMT to confirm market reversals after manipulation. Traders should look for SMT at significant price points, like previous highs or lows, to identify potential entries during the distribution phase.