We know that manipulation takes place as smart money traders. And if we know that, then that offers us a great opportunity to be on the other side of the trades from retail traders. Just to note, the midnight opening will act as the opening of the daily candle. This will be at the open of any time frames candle at 12 a.m. Eastern.
So it doesn't matter if it's a one minute or a one hour candle. As long as you're putting it to open, that happened right at midnight. That is the opening. Midnight opening price abbreviation is MOP.
And you guys will be seeing that a lot. So MOP equals midnight opening price. I'm sure you've seen other traders use that in their charts as well. The power of three consists of three stages.
Most people teach it backwards in my opinion. They teach it as accumulation, manipulation, and then distribution. The way I'm going to teach it to you is different. If you guys don't like that.
If you... Got something to say about it. Just kick rocks, man. I'm not going to waste my time in the comments arguing with you guys.
This is the way I find it the most understandable. And it's the way that I think teaching it will find it the most understandable way for you guys. So if you don't like it, go watch ICD's content. I'm going to simplify it, not just for my following, but for myself in the most understandable way. So I will be teaching it as manipulation, accumulation, and then...
distribution. Step one is to find the manipulation phase. This takes place from 830 to 945 a.m.
Eastern and you're going to be looking for price to be pushed towards the midnight opening. For a bullish day at 830 you want to see price above the midnight opening and then you will see it being pushed towards the midnight opening price. Sometimes it happens earlier, sometimes it happens later, but most days if it's a bullish day it will be pushed to the midnight opening price. or below it also. So now the manipulation phases took place.
Imagine price is near the midnight opening price or below it. This is the accumulation zone. That's how I like to think of it. This is where smart money has now started to build their position. You will see signs of accumulation like three drives pattern, consolidation, and then you should expect a expansion upward.
Then the third step of the daily bar creation is distribution. Smart money exits into the end of the day and distributes. So now that you guys kind of see the whole picture, so you have the manipulation phase where above the midnight opening gets pushed down into and below the midnight opening price. Smart money accumulates a long position, pushes price up, and then distributes it into the end of the day at the high and then into the close. Those of you that have stuck around are familiar with my content know what's up.
Now you can see why it's better to look at it from manipulation to accumulation than distribution. If you look at it the other way, it just doesn't really quite make sense to me. The next section of this video is in the charts examples.
I hope it really helps you guys. I think it will. I know it will.
But if it doesn't, shoot me some feedback. My goal for this channel since day one has been taking... the complicated ICT concepts and just simplifying them into a process that I was able to understand and hopefully transferring my knowledge to you guys as quick as possible and providing you with the most value. If you would leave a comment with some feedback, if you didn't like it, or if you did, I would super appreciate it.
I hope it helps you guys and enjoy the video. Here we are on a three minute chart. I'm going to break down the power of three for you guys step by step in the charts for you right now.
And you're going to learn so much because I spent a lot of time studying the power of three. I would say for a good six months that is the main concept I studied. I studied how it opened, how it reacted before the opening. I studied what it did during the day, how price reacted to the midnight open.
You guys are going to learn and gain. So much value. So let's go ahead and jump into it. If you guys are down with that, if that sounds cool to you, let's do it.
Now we are here right at midnight. Right here, you're going to see the daily bar form is now forming. You have the high and the low.
Okay, it's now 3 to 15 a.m. Eastern. Right here is the midnight opening. That is going to be 12 a.m. on the dot.
When that candle opens, it doesn't matter if you're on a one minute or one hour, as long as it prints a new candle at 12 a.m., which most candles do, exactly where that candle opens, you're going to slap a line on your chart and mark it MOP. See how it drops down and now it's a bearish day all of a sudden because we're below the midnight opening. See that?
How it goes below the midnight opening, it's a bearish day. Above the midnight opening, it is a bullish day. And then usually right before 8 o'clock, you get one more push up. There you go.
So boom. They have now taken out the previous day's high and the session high, the overnight session high. Now this is where it comes important.
This is where I came up with the slip and rip in. I think some people get it confused with Power of 3, but it's just straight up not Power of 3 because Power of 3 is getting long here where smart money is accumulating to sell and distribute later in the day at highs. The slip and rip is the expansion towards the midnight opening on a 3-minute chart between 830 and 845 and you have equal lows that are near or on the other side of the midnight opening. Check out my video.
I'll leave the link in the description. And then now we're going to be looking for price to start the manipulation phase. This is about when it happens.
I'd say $8.30 to $10.45 is when you should expect the manipulation phase to take place. So here it comes. This is the manipulation phase right at the New York opening. We are getting price manipulated to... below the midnight opening for smart money to accumulate long positions and then boom so price comes down here now smart money the institutions the informed traders are going to be entering long here like here they'll they'll be entering here and anywhere below here in this zone add on and sometimes even here as a zone where smart money enters trades okay now that we're at the open We've touched below it now you get a second push for them to add more into it the algorithm is Manipulating price for the smart money traders because they're the ones with the big orders if they need you know 500,000 contracts filled or lots or whatever you're trading or options whatever then they need filled They're willing to buy price down here.
The algorithm is going to spool price towards those orders that are resting there and there's also equal lows here so that then is stop losses prices push below stop losses triggers them then we get another push down for smart money to add contracts so this is what accumulation looks like this is not accumulation that this this is not how is this accumulation they're accumulating a short position no no no not on a bullish day no they may be accumulating a short position went short knowing that price is going to push down below the midnight opening that is my slip and rip setup that is a 100% win rate I'm gonna be doing another video on it because um the last one I did was what three four months ago and I still haven't seen a losing trade with my rule set on it but I'll leave the link in description you guys can check it out so this is what accumulation looks like guys up and then eventually it'll break. And another thing to look for in the accumulation phase is you're gonna look for price come down, come back up like that, come down, two, down, three, and then up. So you're looking for the common three drives pattern.
So you have your first push down, you always go after the stop run. So one, two, there's your three push setup. Now we're going to be watching how price is developing around the midnight opening. So yeah, it should act as some kind of support and then price will blast off. And then see as it moves up, the daily candles moving up.
If you continue to look at price like this, it is going to greatly increase your ability to trade. Because if you know price is down here, right? And we're below the midnight opening.
comes back above and then has displacement like this you can be pretty confident that price is not going to go back below the midnight opening there's no reason for it to there is no uh second set of equal lows here from the overnight session and we have a bullish bias for the day do you need a bias no you don't you don't really need a bias because you can use where's price at 8 30 have we went below the midnight opening already between let's just say 8 o'clock and 8 30 no we haven't so you should still be expecting price to go below so if price is above the midnight opening At 8.30, you can kind of be like pretty certain that's going to be a bullish day. I mean, not 100, especially if you see the equal lows here and we're well above it. You can expect it to be a doji day or a bullish day. Let's go ahead and go forward.
We're at 11 o'clock now. See how price dips back down to it again and it offers support. So that's what I've meant by several trades. As price comes back down into here and us knowing that we know the midnight opening, we know that smart money accumulated a long position here, right? We saw that happen here with the three pushes.
We know that they've accumulated a long position. The likelihood that this is going to break this low that's been put in is pretty slim. So with that being said, you can look to take an order block trade of some sort.
Let's go ahead and go forward here. And then at the end of the day, this is when you want to start to think, which way is the daily candle likely to expand? In this case, it's bullish, right?
And you're going to be looking at how you can get long, knowing that the daily bar is likely to expand up. And then what do we have here, guys? You got one, two, three pushes down. Boom. There's another sign of accumulation.
This is what happens when institutions are buying. They buy, and when they buy, it pushes price up, and then it drops back down. They buy again, pushes price back up, and I'm guessing that then they will set their take profit orders up here, really large orders at the overnight high or the high of the day, knowing that the daily bar is likely to expand.
the algorithm sees that there's half a million orders that need filled up here what's it going to do it's going to spool price towards the stop losses to trigger and fill the orders because they know retail has their stops there so you can picture just a liquidity pool just chilling up here it's a liquidity pool of resting orders because you have resting stop losses and you have resting sell limit orders. So you have buy stop orders and then resting sell limit orders. So what's that?
That is a complete fill, but they have to trigger the stops for that to fill. Because if you have half a million contracts or shares or whatever you're trading, resting up here, you have to have the stop losses triggered to fill because half a million is not going to get filled just by people buying and selling. They would have to hold. price in this area for days hours and weeks that's what is actually happening when you see a big daily consolidation that in my opinion is a really big order being filled price stays in a in a zone consolidating but it's not consolidating it's filling a really large order in my opinion let's go forward and then at the end of the day here we should be looking for price to do one of two things either continue expanding up or it will drop back down so you do have an imbalance here i just chose a random day so i'm not absolutely positive of it but there you go boom so there's your stop losses triggered and see how after they're triggered it just explodes higher so that in my opinion would be that there's more um there's more buy stop limit orders from people selling here in here and putting their limit order or their stop losses here than there was a sell order so if there's an imbalance at the high like that what you're going to have is price explodes very very aggressively up because there's more buy orders buy stop limit orders there then people that bought here and here at the institutions then they put sell limit orders here. That is why you tend to get the explosion in price up.
So now is this a possible turtle soup trade? I would say you know you should get some kind of retracement here for sure. It may not be a very big one but you'll you'd get a scalp at least.
So boom then you have price coming down and you still haven't. hour and a half before the close, I would be thinking that, um, prices likely expand up, but I'm not, I'm not sure at this point. My goal, if I was trading this was to, uh, be involved on the run of the stops and an exit into strength up here and then do you guys see this as well so you have one push one two and then three so that's another three drive pattern right there and what's happening here is the opposite of what you saw before price comes down they buy but then they're also selling into strength smart money It's called smart money for a reason because they do what smart traders do.
Smart traders add selling to strength and then they'll re-add selling to strength. That is exactly how I trade most of the time. Okay, now let's see what the close of the bar looks like. And then boom. So.
You got 15 minutes left unless there's like some extreme move down you should get a pretty bullish looking candle. All right so four o'clock price goes to 4.45 is the last print. Voila so there is a breakdown of a complete day of power of three using it.
I think this should give you guys a great understanding of how price is reacting to the daily candle and how you can use your understanding of the midnight opening knowing that it crossed below it went back above it came back tested it and stayed above it after you get expansion right here you should be bullish like there's no reason for you to think price is going to continue downward because you have the opposite so if price was truly uh bearish it would have came below it test back tested it maybe went above it just a little bit and then continue downward So what smart money did here at the end of the day is they start distributing, right? So this is phase three. So phase one, phase two, and then here's your phase three taking place. They're exiting at the high of the day, selling, selling, selling, selling.
So this price comes up at the end of the day here, runs the stops. I'm sure, like I explained earlier, there's a lot of orders resting here. They got filled upon the liquidation of the stops.
And then as price comes back up into here, you know, I would assume that they're distributing more. Because if you add it down here, you know, at 1440 or so, and you're selling here, that's 30 points. You know, that's quite a bit of money with a few thousand contracts or even 100 or even 10. That's quite a bit of money.
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I verified some of these companies and made a website. So if you go to my website it's verifiedfundingcompanies.com. You have a little homepage here of some blogs you can check out. But they're kind of outdated.
I need to try a little bit harder on making new blogs. Focus on video content for now. But you click right here. It will take you to the discount page.
You guys can subscribe and I'll send you the discounts once I start doing that. I haven't started doing it, but I will be starting here very soon. I wanted to get enough people subscribed to make it worth it.
I think I'm at almost 500 now. So at 500, that was my goal. And then I would start sending out the emails.
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So that's the goal is to teach them, give them my knowledge as quickly as possible to get them up to speed.