Top Days or so called ICT Power of 3 easily explained

Hogarste

Well-Known Member
ICT said some interesting things recently in the MM series about learning. Trading makes so much more sense when you understand the logistics of things at an order flow level. The power of three is Dow theory applied to candlesticks. I have learned from ICT that this the MM's on a bearish day acquire liquidity to drive the market lower, above the daily open (often raiding the buy stops of bearish retail traders) price and points of structure / SR / OB's /OTE's. Applying the idea of SM selling into bullish price moves because of their size helped me understand this even more.

For some people, the learning process kicks in more when they understand the 'why' things are happening in addition to the 'what' is happening.
 

sqa

Village Scribe
1) That's not the Power of 3. For as simple of a concept it actually is, people (myself included) really do botch up the understanding really easily.

Power of 3: If you're expecting an Up Day, look to Buy below the Open. If expecting a Down Day, Sell above the Open. ;) That's all it is.

2) Power of 3 isn't Dow Theory. SMT Divergence is "closer" to Dow Theory, but it generally operates on a much lower time-frame.

3) A lot of technical tools look "great" when we're on a Primary Trend in the USDX. :)
 

Hogarste

Well-Known Member
sqa said:
1) That's not the Power of 3. For as simple of a concept it actually is, people (myself included) really do botch up the understanding really easily.

Power of 3: If you're expecting an Up Day, look to Buy below the Open. If expecting a Down Day, Sell above the Open. ;) That's all it is.

2) Power of 3 isn't Dow Theory. SMT Divergence is "closer" to Dow Theory, but it generally operates on a much lower time-frame.

3) A lot of technical tools look "great" when we're on a Primary Trend in the USDX. :)
I can see what it seems like I was implying in my post, but I must respectfully disagree. The power of three absolutely is a candlestick representation of the market trends tenet of Dow theory. The reason for my initial comments was because for some folks connecting Po3 to Dow helps it to make more sense sense, while for others understanding that one buys when the market is below the open, and to sell when the market is above the open. They are the same concept. My post though is more about learning and the fact that we all learn things differently. Many people are able to grasp concepts on a micro basis, but some of us grasp things more easily when we see the relation of one thing to another. ICT alluded to this in one of the last videos.

Perhaps I should have written that Power of three is the same as the 'Market Trends' tenet of Dow theory.
 

TheInnerCircleTrader

Well-Known Member
Just for the record, this is not my Power Of 3 Concept.

Power of 3 is the specific three phases of Accumulation - Release - Distribution cycle in Price Action.

The direction of a single up day or down day has nothing to do with my principle as it relates Power Of 3.
 

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