El Chapo Profile picture
Mar 23 10 tweets 4 min read
" 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

Mar 14
"How to Reduce Capital Drawdown in Trading"

Living to fight another day w/ Reverse Compounding

A Thread 🧵
1)Trading as a business model is simple - Your losing trades can be seen as expenditure with your winning trades being income.

From there we use Risk to Reward + Win Ratio to determine what makes sense for us in order to run as a successful business.
2)So if you can learn any complete trading model for free online, why do so many traders blow their accounts and fail long term?

In my experience and opinion, there is one main issue :

A series of losing trades that leads to poor decision making and further capital drawdown. Online Prop Firm statistics
Read 12 tweets
Mar 8
"Asia's Range"

One of the most telling components of intra-day price action

A Thread 🧵
1) The Asia Range, originally taught by Chris Lori and popularized by ICT, is composed of the high and low created during the Tokyo Session prior to the London Open.

The Tokyo Session runs an hour or so into the London Open but the primary focus is the PA prior to the open. Image
2) When annotating the Asia Range on your chart, you want to delineate :
20:00 EST - Starts
00:00 EST - Ends
From there you can extend the High and Low formed during the 4 hour range across into the London + New York Open. Image
Read 8 tweets

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