ICT Power of 3 (PO3): What It Is and How to Trade It

What Is ICT PO3?

The ICT Power of 3 (PO3) is a price-action framework from the Inner Circle Trader (ICT) that breaks the daily market structure into three phases: accumulation, manipulation, and distribution (AMD). 

It’s a core idea within Smart Money Concepts (SMC), designed to show how liquidity flows through each session.

Instead of looking at price as random volatility, the Power of 3 model helps traders read intent where the market builds positions, hunts stops, and releases momentum. Each phase connects to institutional order flow, revealing how large players prepare and deliver the day’s main move.

This simple structure repeats across forex, crypto, and indices, making PO3 trading a clear way to understand how the market’s daily rhythm unfolds.

The Three PO3 Phases: Accumulation, Manipulation, Distribution

The ICT Power of 3 (PO3) model shows how every trading day often follows three predictable stages. Each phase reflects a different purpose in the way institutional traders manage liquidity and drive price movement.

1. Accumulation Phase

During accumulation, the market moves quietly in a narrow range while large players begin building positions. This usually happens in low-volatility periods, such as the Asian session.
What to look for:

• Sideways movement with small candles

• Tight ranges near the daily open or a key support/resistance

• Stop-losses resting above and below the range
   

2. Manipulation Phase

Once enough liquidity has formed, the price makes a false breakout. This quick move collects stops and triggers emotional entries from retail traders, creating the fuel for the next leg.
What to look for:

• Sudden spike above or below the range

• Clear stop-hunt wicks followed by reversal

• Moves often appear near the London or New York open
   

3. Distribution Phase

After stops are taken, institutions drive prices in the intended direction. This is the real move of the day, powered by momentum and aligned with higher-timeframe bias.

What to look for:

• Clean break of structure

• Large directional candles and stronger volume

• Price reaching external liquidity targets
   

These three steps, accumulation, manipulation, and distribution (AMD), create a repeating rhythm visible across forex, crypto, and indices.

How to Identify PO3 Patterns in Markets

Spotting the ICT Power of 3 (PO3) pattern in live markets starts with timing and context. The sequence often unfolds within a single trading day, but it can also appear on larger timeframes. 

The goal is to recognise when price moves from quiet accumulation to a sharp manipulation, and finally into a clean directional run.

1. Time-Based Clues

Each phase tends to align with specific sessions.

• Asian session: Often the accumulation zone, where price ranges quietly.

• London session: Commonly triggers the manipulation sweep.

• New York session: Drives the distribution move, completing the cycle.
  Understanding this rhythm helps you prepare before volatility starts.
   

2. Price Action Signals

Price action shows where liquidity builds and shifts.

• Range breaks mark the transition from accumulation to manipulation.

• Liquidity sweeps confirm that stops were taken.

• Structure shifts signal when distribution begins.
   

3. Volume and Momentum

During manipulation, you’ll often see a volume spike without sustained follow-through. In distribution, momentum builds steadily with larger candles and cleaner trends. Watching this change in character helps filter false moves.

4. Multi-Timeframe Confirmation

Combine intraday charts (15-min, 5-min) with higher ones (H4, D1) to set bias. If the daily chart shows bullish intent, look for the PO3 sequence forming beneath liquidity lows; if bearish, above prior highs.

When these elements align, session timing, liquidity behaviour, and structural shift, you’re likely seeing a full Power of 3 pattern unfolding.

PO3 vs Related Trading Concepts

The ICT Power of 3 (PO3) model shares ideas with other trading frameworks, but its focus on daily liquidity cycles makes it unique. Understanding how it differs helps traders avoid mixing concepts and apply the right logic to each setup.

PO3 vs Wyckoff Method

Both models describe accumulation, manipulation, and distribution, but they operate on different scales.

• Wyckoff focuses on long-term market cycles within larger structures.

• PO3 condenses the same psychology into a single trading session, showing how institutions repeat these phases every day.
   

PO3 vs Market Profile

Market Profile analyses how volume distributes over time, highlighting fair value areas.

• PO3, in contrast, is time-based and liquidity-driven.

• It doesn’t depend on volume histograms but on where stops and imbalances form across sessions.
   

PO3 vs Traditional Breakouts

Classic breakout traders often enter as price leaves a range right when manipulation occurs.

• PO3 helps distinguish false breakouts from real directional moves, teaching traders to wait for structure confirmation before entry.
   

These comparisons show why Power of Three trading offers a clearer read of intent: it connects price movement to liquidity behaviour instead of relying solely on indicators or volume zones.

Basic PO3 Trading Strategies

Once you understand the Power of 3 (PO3) structure, the next step is learning how to apply it in real trading. The goal isn’t to predict every move, but to plan around the three daily phases with context and risk control.

1. Set a Daily Bias

Before looking for setups, check higher timeframes (4H or Daily) to see where price is likely heading.

• A break of a recent high or low often shows the next liquidity target.

• Fair Value Gaps or order blocks mark zones where price may react.
  This bias tells you whether to expect a bullish or bearish PO3 sequence during the day.
   

2. Mark Key Levels

Outline the structure that will guide the pattern.

• Daily open: The midpoint for accumulation and manipulation.

• Previous session highs/lows: Typical stop-hunt areas.

• Asian session range: A likely accumulation zone, especially in forex.
   

3. Spot the Entry and Exit

• Bullish setup: Accumulation forms below the daily open > manipulation sweeps lows > structure shifts up > entry on retrace toward a fair value gap or mitigation zone.

• Bearish setup: Accumulation above the daily open > manipulation sweeps highs > structure shifts down > entry after rejection near a premium zone.
  Targets are usually clean liquidity pools or previous session highs/lows.

4. Manage Risk

Place stops beyond the manipulation wick and aim for at least a 2:1 reward-to-risk ratio. If structure breaks against your bias, exit early; the sequence has likely reset.

The PO3 trading strategy works best when traders focus on alignment: bias, structure, and liquidity behaviour all pointing in the same direction.

Conclusion

The ICT Power of 3 (PO3) shows how every trading day follows a rhythm, a calm buildup, a fake move, and the real push. Seeing these three moments on the chart helps you understand where liquidity forms and when the market reveals its true direction.

It’s not about predicting every swing, but reading price with purpose. Once you recognise this daily pattern, the market stops feeling random, and your trades start to make a lot more sense.