In the context of ICT (Inner Circle Trader) – Michael Huddleston's trading school –
The term PO3 is an abbreviation for Power of Three.
🔎 The main idea:
The market usually moves according to 3 main recurring phases:
1. Accumulation:
The price moves sideways (Range) to accumulate liquidity and mislead traders.
2. Manipulation:
There is a "sweep" or false breakout of a support/resistance level to attract liquidity from the wrong side.
3. Expansion (Expansion/Launch):
The real trend begins, where the price is pushed strongly towards the target (the trend).
✅ PO3 is often used on: the daily timeframe: appears in one day's movement (Asian range → manipulation → New York expansion).
The weekly/monthly timeframe: to predict the price direction after phases of accumulation and deception.
In other words:
PO3 teaches you not to be deceived by the initial market movements, as the second phase (manipulation) often traps traders before the real trend begins.
📌 Power of Three (Daily)
1️⃣ Accumulation (Accumulation) often occurs during the Asia session.
The price moves in a narrow range (small Range) without a clear direction.
Target: to build the "trap" and wait for liquidity to gather.
2️⃣ Manipulation (Manipulation)
It starts with the opening of London or the early New York.
There is a false breakout (sweep) of one end of the Asia range:
Either above the peak to attract buyers.
Or below the low to catch the sellers.
This movement is often illusory, aimed at collecting stop-loss orders (Liquidity grab).
3️⃣ Expansion (Launch)
It often occurs in the New York session.
After the deception, the real trend begins strongly.
Here the daily trend is realized (Bullish or Bearish run).
It often reaches specific targets such as Daily high/low or important liquidity levels.
💡 The idea: Do not enter with London breakouts often, but wait for the manipulation then enter with the launch (the real trend).
📌 Steps to practically apply PO3 in one day
1️⃣ Determine the Asia range (Asian Range)
Watch the price movement from 00:00 to 05:00 GMT approximately.
Draw a line at the highest peak and lowest trough at this time.
➡️ This range is the "accumulation".
2️⃣ Monitor the London session (Manipulation)
After the London opening (07:00 – 09:00 GMT), a sweep often occurs:
If the price breaks the Asia low → it is likely a deception for a downward move.
If the price breaks the Asia peak → it is likely a deception for an upward move.
➡️ Do not enter directly with the breakout, as it is often a false break.
3️⃣ Wait for the New York session (Expansion)
After manipulation, the real trend begins (from around 13:00 GMT).
Enter the trade after you see: the price returning inside the Asia range after the false breakout. Or the appearance of a strong candle with volume confirming the reversal.
➡️ This is where the "launch phase" starts.
4️⃣ Set targets and stop loss
The stop: behind the last peak/trough (sweep location).
First target: the midpoint of the daily range or the nearest liquidity level.
Second target: the expected daily high/low.