Module 3 — Timing and trading models · Lesson 11 of 23 · 7 min
Power of 3: accumulation, manipulation, distribution
The conceptual model that describes a typical day in three phases, and how to use it without forcing it.
The three phases
- Accumulation: price consolidates in a range (typically in the Asian session)
- Manipulation: a false move in one direction, sweeping the liquidity on one side (often at the London open)
- Distribution: the real move, in the direction opposite to the manipulation, carrying price towards the target
How it reads on the chart
If price makes a false move up beyond the Asian high and then returns and breaks down, the model suggests the day's direction is bearish. In ICT language this move is also called a 'Judas swing'.
The key limit
It is a descriptive model: many days don't follow it. Some days are pure trend from the open, others stay in a range all day. Before turning it into rules you must measure how often, on your instrument and in your period, the model shows up.
Exercise
- For 40 days classify each day: full model, trend only, range only, other
- Calculate the percentage of days on which the model occurred: it is your basis for deciding whether to use it
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Educational content, not financial advice. Trading involves risk. ICT is a term referring to the materials of Michael Huddleston: this course is independent and not affiliated.