Models
ICT Power of Three (AMD) Explained
Power of Three, often shortened to AMD, describes Accumulation, Manipulation and Distribution. ICT traders use the model to organize ideas about how price may behave around a range or session.
Accumulation
Accumulation is commonly used to describe a period where price develops within a range before a larger move. It is an interpretation, not direct evidence of who is accumulating orders.
Manipulation
Manipulation refers to a move beyond a visible high or low interpreted as a false break or liquidity event. Not every breakout is a manipulation phase.
Distribution
Distribution is the directional phase some AMD interpretations expect after the range and liquidity event. Markets can remain range-bound or behave differently.
How to study AMD
Define the range, reference high/low, sweep rule and directional confirmation. Backtest the complete sequence rather than labeling it after the outcome.
Worked example (hypothetical)
To review an AMD idea, mark the reference range and the time blocks before the expected directional move. Define what counts as a manipulation or sweep, what observable condition supports a distribution scenario and what would invalidate it. Label the phases before looking at the final outcome, then keep examples that do not fit the sequence. This reduces the temptation to describe every range as accumulation and every reversal as manipulation after the fact. The framework can organize a hypothesis, but trading sessions do not have to follow three distinct phases.
FAQ: Does every trading day follow accumulation, manipulation and distribution?
No. AMD is an interpretive framework for a possible sequence. Some sessions trend without a clear three-phase pattern, remain range-bound or move in another order. Do not label the phases only after the day is finished.
FAQ: How do I distinguish a manipulation phase from an ordinary move?
Use the specific criteria defined by the model, such as a reference range, sweep condition and subsequent confirmation. The label does not prove deliberate manipulation by a participant.
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