ICT AMD / PO3 Method Explained
The ICT (Inner Circle Trader) AMD / PO3 method is a price action model that describes how the market moves in three distinct phases within a trading session.
It’s based on the idea that price is manipulated to engineer liquidity before moving to its real target.
1. What Does AMD / PO3 Mean?
A.M.D. → Accumulation, Manipulation, Distribution
PO3 → Power of 3 (same concept but with a trading bias applied)
Both describe the same three-phase market behavior:
Accumulation Phase (A) – Price moves sideways in a range, building orders and trapping traders.
Manipulation Phase (M) – Price makes a false move to trigger stop losses or attract traders in the wrong direction.
Distribution Phase (D) – The real move begins, targeting liquidity in the opposite direction of the manipulation.
2. Why Is This Important for Traders?
Helps you avoid false breakouts.
Shows you when not to enter.
Helps identify high-probability setups within the daily range.
3. The 3 Phases in Detail
A. Accumulation
Time: Usually during the Asian Session or early London Session.
Price stays in a tight range.
Purpose: Market makers gather buy & sell orders to fuel the coming move.
Example:
If the previous day closed at 1.2500, price might bounce between 1.2490 and 1.2510 for hours.
B. Manipulation
Time: Often during London Open Killzone or New York Open Killzone.
Price suddenly breaks the range in the wrong direction.
Purpose: Take liquidity (stop hunts) and trap traders.
Example:
Price fakes a breakout above 1.2510 to 1.2530, hitting buy stops, then reverses hard.
C. Distribution
Time: After the manipulation is done, the market moves strongly in the real direction.
This is the true trend for the day/session.
Targets: Previous day high/low, liquidity pools, or imbalance.
Example:
After faking the breakout upward, price drops from 1.2530 down to 1.2460.
4. PO3 – Power of 3
When applying this to trading bias:
Accumulation → Market builds orders.
Manipulation → Price fakes against your bias.
Distribution → Price runs in your bias direction to target liquidity.
Key Tip:
PO3 works best when combined with daily bias from higher timeframes (HTF).
5. How to Trade AMD / PO3
Identify Daily Bias → Bullish or Bearish using HTF (Daily/4H).
Mark the Asian Range → High and Low.
Wait for Manipulation → Price should take liquidity opposite to your bias.
Enter After Confirmation → Look for reversal signs inside a kill zone.
Target Liquidity → Previous day high/low, FVG, or significant level.
6. Example Trade Setup
Bias: Bearish (HTF shows bearish market structure)
Asian Range: 1.1020 – 1.1040
London Open: Price spikes up to 1.1055 (manipulation)
Entry: Short after bearish confirmation candle
Target: 1.0980 liquidity pool
7. Common Mistakes
Trading inside accumulation (low probability)
Entering during manipulation (you get trapped)
Ignoring time of day (ICT Kill Zones are critical)
8. Final Notes
The AMD / PO3 method is a powerful price action model, but it works best with:
Time of day analysis
Liquidity concepts
Higher timeframe bias
Trade patiently. Wait for the 3 phases to play out, and only strike during the distribution phase in line with your bias.
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