Overview
The video explains “market profiles” as prerequisites for disciplined trading, focusing on the Power of Three (accumulation, manipulation, distribution) and how higher-timeframe profiles guide lower-timeframe entries.
Core Concept: Power of Three (Po3)
- Defined as accumulation, manipulation, distribution; framed as accumulation + manipulation = distribution.
- Ocean wave analogy: pullback (accumulate), rise (manipulate), crash (distribute).
- Every move, large or small, expresses Po3 logic even when not visually clean.
- Use Po3 to align entries with narrative; avoid gambling on isolated setups.
Higher-Timeframe Profiles and Narrative
- Always start with higher-timeframe bias and target (draw on liquidity).
- Profiles discussed:
- Low Resistance Liquidity Run (LRLR): price “rips” in trend direction.
- Power of Three: consolidation, liquidity grab, then move to target.
- Reversal profile: manipulate against trend, then distribute back to highs/lows.
- Accumulation–Expansion–Retracement–Expansion (A–E–R–E).
- Market Maker Buy Model (MMBM): smart money reversal, consolidation retest, expansion.
- Higher-timeframe alignment increases odds and filters fake signals.
Time-of-Day and Session Logic
- Accumulation typically during early AM; manipulation near 9:30–10:00 a.m. New York; distribution around 10:00–10:45 a.m.
- Volatility at key times signals likely manipulation (fast move against higher-timeframe bias).
- Session sequencing:
- If London distributes to target, NY AM/PM likely “seek and destroy” (avoid).
- If Asian distributes and London accumulates, expect NY AM manipulation and PM reversal.
Entry Models and When to Use Them
- 2022 model (MSS + FVG) is insufficient alone; must be in correct profile and HTF context.
- IOD/IOFed (Institutional Order Flow Entry Drill):
- Best during LRLR and expansion legs; anticipate shallow retracement.
- Look to engage after structure break near/after consolidation in discount/premium as applicable.
- OT (Optimal Trade) to consolidation:
- In A–E–R–E and MMBM, expect retest of consolidation (second-stage accumulation).
- Turtle Soup:
- Viable in Po3 at 9:30 sweep of consolidation lows/highs; target opposite side.
- More ambitious; use with narrative.
- Po3 as foundation:
- LRLR often equals the distribution leg of Po3.
- A–E–R–E commonly sits within Po3’s distribution phase.
Practical Identification and Common Mistakes
- Don’t take MSS + FVG blindly; check HTF profile, time, and liquidity.
- Accumulation can look messy; focus on repeated reactions at inefficiencies and common levels.
- Fake market structure shifts occur; avoid pattern-only trading without narrative.
- Use Fibonacci for premium/discount to locate higher-probability zones for Po3 development.
Applications and Examples (Conceptual)
- Before major drops: see accumulation (tight bodies/sideways), manipulation up to take buy-side, then distribution lower.
- On bullish HTF: expect bearish manipulation below lows at key time, then distribution higher.
- If distribution completed in London, skip NY to avoid chop.
Structured Summary of Profiles and Entries
| Profile | Key Features | Best Entry Models | Time/Session Clues | Notes |
|---|
| Power of Three (Po3) | Accumulation → Manipulation → Distribution | Turtle Soup, 2022 Model, IOD | Manipulation around 9:30–10:00 NY; distribution ~10:00–10:45 | Foundation; align with HTF bias and liquidity |
| Low Resistance Liquidity Run (LRLR) | Strong directional run | IOD/IOFed | Occurs during trend continuation sessions | Represents Po3 distribution leg |
| Reversal Profile | Manipulate against prevailing move, then distribute back | 2022 Model after larger MSS | Key times; fast move against HTF bias | Requires larger MSS on HTF |
| A–E–R–E | Expansion, shallow retrace, expansion | IOD on expansions; OT to consolidation | After initial expansion phases | Consolidation retest expected |
| Market Maker Buy Model (MMBM) | Smart money reversal, consolidation retest, expansion | OT to consolidation; IOD on expansions | Sequence-driven across sessions | Not a Po3 expectation during retest |
Key Terms & Definitions
- Power of Three (Po3): Accumulation, manipulation, distribution; accumulation + manipulation = distribution.
- Manipulation: Fast liquidity sweep against HTF bias near key times; sets up distribution.
- Distribution: Move toward target after manipulation; often the “run.”
- Low Resistance Liquidity Run (LRLR): Clean run with minimal pullback toward liquidity.
- IOD/IOFed: Institutional Order Flow Entry Drill; refined continuation entry method.
- 2022 Entry Model: Market structure shift with fair value gap entry.
- Turtle Soup: Liquidity sweep reversal entry away from draw on liquidity.
- Market Maker Buy Model (MMBM): Reversal structure with consolidation retest and continuation.
- Seek and Destroy Day: Choppy day post-distribution; low-quality trading conditions.
- Draw on Liquidity: Primary target area aligned with HTF narrative.
- Premium/Discount: Fib-based zones to locate asymmetric opportunities.
Action Items / Next Steps
- Determine higher-timeframe profile, bias, and draw on liquidity before seeking entries.
- Map session expectations: identify accumulation, manipulation window (9:30–10:00), and likely distribution.
- Favor IOD during LRLR and expansion legs; use OT for consolidation retests in MMBM/A–E–R–E.
- Use Fibonacci to mark premium/discount and hunt Po3 formation in those zones.
- Avoid trading NY session if London already distributed to target; watch for seek and destroy.
- Journal Po3 stages, time-of-day, session behavior, and entry outcomes to internalize the narrative.