📈 Power of Three (PO3) in Trading – Understand the 3 Phases of Price Movement!

The Power of Three (PO3) concept is widely used by traders to identify strategic market movements, which generally follow three phases:

1️⃣ Accumulation

At the beginning of the period, the price moves sideways, forming a zone where large players (institutions or “smart money”) accumulate their positions without causing major fluctuations.

2️⃣ Manipulation

After accumulation, market manipulation occurs. This includes a false movement (such as a drop below the minimum) to take unprepared traders out of the market and activate stop orders.

3️⃣ Distribution

After manipulation, the price breaks resistance and makes an explosive movement in the opposite direction, creating a strong upward trend (or downward, depending on the context). Here, large players begin to distribute their positions in the market.

🔹 Key Points in the Analysis:

• Opening: Start of the analysis period.

• Minimum: The lowest value reached, usually manipulated.

• Maximum: The highest value, where the distribution occurs.

• Closing: The final value of the period.

Understanding PO3 helps you identify the intentions of the big players and act more assertively in the market. 📊 Master the market, understand the game!

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