Power of 3 (AMD)

AMD, also called the Power of 3, says that every candle on every timeframe hides the same three phases. Read them and a single candle tells you how price was delivered.

Accumulation → Manipulation → Distribution

What each phase tells you

• Accumulation: price rests in a tight range with small candles and low volume. Most traders get bored here, but this is where the next expansion starts.
• Manipulation: a fake breakout to the other side that sweeps stop losses, then a fast reversal.
• Distribution: price expands in one direction toward its target, such as an old high or a Fair Value Gap.

That is why a bullish candle tends to print Open → Low → High → Close, and a bearish candle Open → High → Low → Close.

In the course, AMD is the first lesson of Module 1. In Module 2 it is paired with time as the AMDX and XAMD structures, to show which quarter is worth trading.