Power of three (AMD)

Accumulation, manipulation, distribution: the shape of a day's candle.

ICT describes each daily candle in three phases: price accumulates near the open, then makes a false move against the day's real direction (the Judas swing), then distributes in the real direction. A bullish day often trades below its open first.

Illustration drawn by Propbook, not a real chart.

How to spot it

1
Mark the day's opening price (ICT uses midnight New York time).
2
In a bullish bias, expect a drop below the open early in the day: that is the manipulation.
3
Look for the shift back above the open: the distribution leg is the move you want to be in.

On a prop firm account

The Judas swing is exactly where impatient traders hit their daily loss limit. Waiting for the shift back costs you a few points of entry but keeps you out of the trap.

Position size

Watch ICT explain it

Your notes

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Related concepts

Killzones & macros

The hours when the algorithm moves price, in New York time.

Daily bias

Decide where price is going today before you look for an entry.

Liquidity: buy-side and sell-side

Stops rest above highs and below lows. Price goes there first.

All videos are by Michael J. Huddleston, the Inner Circle Trader, and play from his YouTube channel. Propbook is not affiliated with ICT; this is an independent index.