11 Tweets 139 reads Feb 14, 2024
How I Trade Power Of 3 (PO3)
Thread🧵
Hello all, in this thread I will be going over
-The anatomy of PO3 for clarity
-PO3 Entry’s
-Weekly PO3 example
-Daily PO3 example
Let's get started!
The anatomy of PO3, is split into 3 parts
-Accumulation
-Manipulation
-Distribution
For this annotated example I will be using a bullish daily scenario
The same principles would apply inversely if my bias was bearish.
What is PO3
-Accumulation
Accumulation refers to the phase in where smart money or large institutions accumulate positions.
Ideally, if we have a bullish daily bias we would want to see accumulation below or around the NY Midnight Opening price (Daily Open).
-Manipulation
This phase is a false move, where smart money influences retail traders into thinking price is breaking down
They then engineer liquidity by taking stops before expanding in the opposing direction.
-Distribution
The final phase of PO3 is expansion / distribution, in which smart money distributes their positions
This move should take out a targeted level in accordance to our daily bias.
Here is also a bearish example for reference
Just to note.
If bias is bearish; Look for accumulation ABOVE or around opening price
If bias is bullish : Look for accumulation BELOW or around opening price
-Entry’s
With PO3’s and in general, having a clear invalidation and draw are most important
My first entry would be getting long / short at the breaker if given
If not my second entry would be at a fvg with my stop above/below the closest invalidation
I will give examples now
Weekly PO3 Example
Here is a bearish weekly PO3 example on EU
-Monday : Accumulation around the weekly open
-Tuesday: Manipulation to take out pwh, along with another sweep of bsl
-Wednesday to Friday : Expansion towards our target
(pwl)
-Daily PO3 Example
Here is a bullish Daily PO3 example on EU
-Asia: Accumulation in the Asia session
-London: Manipulation in the London session to take out sell stops (pdl)
-NY: Expansion to the upside in the NY session to take out target (pdh)
Thank you all for reading and I hope you enjoyed!
As always, you can find my full archive of educational writeups exclusively at @Chroma_Trading
whop.com

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