El Chapo Profile picture
Mar 23, 2023 10 tweets 4 min read Read on X
" Power of 3 "

The ICT Concept that Elevated my Trading

A Thread 🧵
1) Power of 3 (Po3), also referred to as Accumulation, Manipulation, Distribution / Expansion (AMD), is a concept taught by ICT.
2) Bullish Po3

Accumulation = Longs build up

Manipulation = Engineering short liquidity, Neutralising Long Liquidity and sell stops paired with buy interest

Distribution = Pairing long exits with pending buy interest

Vice versa for a Bearish Po3
3) "Price Action is Fractal in Nature"

Time and Price Theory shows us that every candlestick, regardless of timeframe, is compiled of an open, high, low and close (OHLC).
4) For me as a day trader I will establish bias (loosely held as more information is made available to me) from the Weekly and Daily

If PA is Bullish - Focus on buying at or below the daily opening price

If PA is Bearish - Focus on selling at or above the daily opening price
5) Manipulation Below the Daily Open is referred to as the ICT Judas Swing.

It is the "False Run" that trips traders up.

It Begins at Midnight New York Time
And Ends at 5:00am New York Time
6) A easy trick is to compile the Trading Sessions into their own daily Po3

Accumulation = Asia
Manipulation / Judas Swing = London
Expansion = New York
7) Weekly Po3 Profiles can also be key when Trading Intra-day.

In Bullish Conditions we can anticipate the Low of the week forming between Tuesday and Wednesday.

And During Bearish Conditions we can anticipate the high of the week forming between Tuesday and Wednesday.
8) Further Resources

1 -
2 -
3 -
9) Conclusion

Po3 is the anatomy of Price Action on ALL timeframes - OHLC.

Approaching it from a weekly and daily timeframe allows us to build context and narrative for our intra-day trading.

I hope you found this thread insightful 🫡

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More from @ElChapoXBT

May 3
How I Identify Daily Bias: How to guide!

A thread 🧵Image
When identifying a daily bias, it is crucial to understand that there is always a draw on liquidity (DOL)

This can be seen as price either expanding towards key buyside and sellside levels, and or filling inefficiencies.
When Identifying my bias I tend to look for the following:

- If key levels are being respected?
- Swing High/Lows (Buyside and Sellside Levels)
- If order flow is bullish or bearish?
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Dec 4, 2023
Understanding the ICT Fair Value Gap

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Core Concept of FVGs:

1. ICT's Definition:

FVGs are defined as specific ranges in price delivery where a disparity in market liquidity is observed, often accompanied by a Liquidity Void in the same price range.

This creates a gap, indicating a vacuum in trading activity.
2. FVG Formation:

Recognizable in a three-candle sequence on a price chart, an FVG is identified by a large central candle surrounded by smaller candles that do not fully overlap its range, signalling a swift market move. Image
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Nov 30, 2023
Understanding Internal & External Liquidity

A Thread 🧵
Image
Liquidity can be categorized into two primary types:

External and Internal

Each type plays a unique role in how the markets move and are essential concepts for any trader to grasp.
External liquidity is essentially the liquidity that exists above and below the old highs and lows.

These are the areas where the market has previously established significant price levels, and as a result, traders often place stop orders around these points. Image
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Sep 26, 2023
A Tokenomics101 Guide 🧵

The Building Blocks to Fundamental Analysis
1/ Understanding Tokenomics is paramount for anyone delving into the crypto space.

It’s the blueprint of a cryptocurrency, determining its economic model, and, thus, its viability and longevity.

Grasping tokenomics aids in discerning token values and potential future worth.
2/ Max Supply: The total coins that will ever exist. It impacts scarcity; less supply often equals higher price if there’s demand.

Eg. Bitcoin’s max is 21 million. Knowing this can aid in predicting long-term value based on scarcity.
Read 13 tweets
Jun 9, 2023
💎Previous Day High / Low Raid💎

A Complete Trading Module 👇 Image
📍INTRODUCTION

In this thread I will run through a simple trading strategy, I've been profitable with, that I think anyone can learn and be consistent with their execution.

This will be very much a intermediate level thread and may require some prior PA understanding!
🔖CONCEPT

Idea being that above old highs & old lows we have resting liquidity in the form of buy-stops & sell-stops.

When a Daily Range is formed, the next day has the potential to purge either side of that range - offering a key raid trade. Image
Read 11 tweets
May 8, 2023
A Masterclass on Market Structure

"There is no second best" ~ Michael Saylor
"Your Size is not Size, Without Market Structure" ~ Do Kwon

A Thread 🧵 Image
1) Identifying Market Structure

Market Structure is very much the ABCs of trading yet most traders are constantly taking losses because they are simply offside.

Having the basic know how and discipline to annotate Market Structure should be a priority in my opinion.
2) Uptrend

When Price is in a Uptrend it sets consecutive Higher Highs (HH) and Higher Lows (HL).

In this environment, unless at a key raid / rejection level - Longs are the highest probability setups = Low Hanging Fruit. Image
Read 12 tweets

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