Thread: Unveiling the Secrets of Accumulation, Manipulation, and Distribution in Trading!

1/ Let's explore the concept of Accumulation, Manipulation, and Distribution (AMD), also known as the Power of 3. This particular concept is regarded as an excellent strategy for…
2/ Accumulation represents a stage within the market cycle when smart money strategically gathers a substantial quantity of a particular asset. During this phase, prices tend to consolidate while engineering liquidity on either side. But in reality, the big players are building…

3/ The manipulation phase follows accumulation and is often marked by sudden and sharp price movements that catch retail traders off guard. Manipulation occurs in the opposite direction of the “real move” and is aimed to stop out retail and induce breakout traders.

4/ When we are bullish we look to buy this manipulation at or below midnight opening price (OLHC). When we are bearish we look to sell this manipulation at or above midnight opening price (OHLC). We consider NY midnight open the true day open and “fair value”.
5/ Understanding the intentions behind the manipulation phase is crucial. Smart money uses these moves to acquire more shares or contracts at favorable prices. By triggering stop losses, they generate liquidity for their positions. They accumulate while retail traders are caught on the wrong side.

6/ Now comes the distribution phase. After accumulating at cheaper prices and manipulating the market to their advantage, smart money begins to unload their positions to eager retail traders who are late to the game.

7/ During distribution, the smart money slowly offloads their holdings, typically in a controlled manner. They distribute their shares to retail traders who are jumping in, eager to open positions at the higher prices. This influx can sustain the rally (or decline) for a while.

8/ / The AMD concept emphasizes that recognizing these phases is essential for successful trading. By understanding when smart money accumulates, manipulates, and distributes, traders can align themselves with the dominant market forces rather than getting caught on the wrong side.
9/ Remember, AMD is not about predicting market movements with certainty but rather about understanding the intentions and actions of smart money. It's a tool to analyze the market structure and adapt your trading strategies accordingly.











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