WHAT IS THE POWER OF THREE (PO3)?
Lets look at the basic model of manipulation for the purpose of accumulation and distribution within separately taken time periods the power of three. Understanding this model is a fundamental skill for working through the methodology of trading disciplines such as swing, short-term and intraday trading.
✴️ WHAT IS THE POWER OF 3?
The power of three is a candlestick/bar formation stages relevant for all timeframes, especially applied within daily and weekly trading ranges, where the opening price is considered to be the beginning of the period. For intraday trading, we only need to apply the weekly and daily powers of three, but we should also pay attention to the monthly candle, as the zones of interest on the higher timeframes increase the chances of success.
✴️ WEEKLY POWER OF 3
The logic of the weekly PO3 is useful for constructing a trading bias.
Bullish Bias. Expect a move below the opening price early in the week, which would be a weekly manipulation (Judos Swing). The low of the week is usually formed between Monday and Wednesday, most often on Tuesday or Wednesday. If the price moves back above the opening level after leaving it, a reversal scenario is possible.
Bearish Bias. We expect a move above the opening price at the beginning of the week, which will be a weekly manipulation (Judos Swing). The high of the week is usually formed in the interval between Monday and Wednesday, most often on Tuesday or Wednesday. If the price moves back above the opening level after leaving it, a reversal scenario is possible.
✴️DAILY POWER OF 3
The opening price level is used to determine a favorable opening zone to take a trade.
Manipulation (Judas Swing). We wait for the completion of the liquidity grab before making a decision.
Expansion is a price action that traders capitalize on.
Distribution is an area in which we take profits.
✴️ WHAT IS THE POWER OF 3?
The power of three is a candlestick/bar formation stages relevant for all timeframes, especially applied within daily and weekly trading ranges, where the opening price is considered to be the beginning of the period. For intraday trading, we only need to apply the weekly and daily powers of three, but we should also pay attention to the monthly candle, as the zones of interest on the higher timeframes increase the chances of success.
✴️ WEEKLY POWER OF 3
The logic of the weekly PO3 is useful for constructing a trading bias.
Bullish Bias. Expect a move below the opening price early in the week, which would be a weekly manipulation (Judos Swing). The low of the week is usually formed between Monday and Wednesday, most often on Tuesday or Wednesday. If the price moves back above the opening level after leaving it, a reversal scenario is possible.
Bearish Bias. We expect a move above the opening price at the beginning of the week, which will be a weekly manipulation (Judos Swing). The high of the week is usually formed in the interval between Monday and Wednesday, most often on Tuesday or Wednesday. If the price moves back above the opening level after leaving it, a reversal scenario is possible.
✴️DAILY POWER OF 3
The opening price level is used to determine a favorable opening zone to take a trade.
Manipulation (Judas Swing). We wait for the completion of the liquidity grab before making a decision.
Expansion is a price action that traders capitalize on.
Distribution is an area in which we take profits.
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