Power of 3 describes the daily cycle: Accumulation → Manipulation → Distribution. Price accumulates in an Asian session range, manipulates (runs stops) at London open, then distributes (true directional move) during New York. Trade the distribution phase in the direction of the manipulation reversal.
Indicators Used
Rules
📈 Long PO3
- Asian session (00:00-08:00 UTC): identify range high and low
- London open (08:00 UTC): price sweeps below Asian range low (manipulation)
- Wait for rejection. Price reclaims the Asian low within 1-2 hours
- This confirms 'false break' in bearish direction. True direction is UP
- Enter long on confirmation of the reclaim close
- Stop: below the manipulation low (the sweep extreme)
- Target: Asian range high, then prior day high (distribution target)
📉 Short PO3
- Asian range identified
- London opens and sweeps ABOVE Asian high (upside manipulation)
- Price fails and reclaims below Asian high
- Short on close below Asian high
- Stop: above manipulation high
- Target: Asian low, then prior day low
⚙️ Configuration
- // Power of 3 Sessions (UTC)
- Asian: 00:00 - 08:00 (Accumulation)
- London: 08:00 - 13:00 (Manipulation)
- New York: 13:00 - 21:00 (Distribution)
3 Phases
Daily Cycle
London
Key Session
💡 Pro Tip
PO3 is a bias framework first, entry mechanism second. Identifying the manipulation side at London open tells you the daily direction. The entry is just one of many ways to participate. Some traders use PO3 bias to only take LONG setups that day, filtering all other strategies through it.