I just received a question about PO3 and want to share my perspective on this. In fact, PO3 is short for Power Of Three — a very useful analysis model often used in trading. It divides the market into three main phases called AMD, which stands for Accumulation, Manipulation, and Distribution.

The accumulation phase is when the market forms resistance and support levels. You will see about three resistance peaks and three support levels being created. If the price breaks through these three resistance levels, it will move upward. Conversely, if it breaks below the support levels, the entire support structure will collapse.

The second part of PO3 is the manipulation phase — this is when smart money begins to act. It usually lasts about two to three months. During this phase, market operators create false moves to lure retail traders. They use stop-loss orders to force small investors to sell off, then reverse their positions and expand in the opposite direction. When the market shakes strongly, many small traders get wiped out and leave the market. At that moment, large market players buy in at low prices and accumulate.

The final phase is distribution — this is the official bull run that everyone is waiting for. In shorter timeframes, it can also fluctuate sideways. But overall, it will push the trend up or down. This is when the market operators distribute their bags into the market.

I am currently monitoring BTC at around 80.27K with a 2.72% increase. On the 1-hour chart, BTC is forming a clear PO3 with quite distinct horizontal lines. This is a noteworthy signal if you are tracking BTC. Understanding PO3 well will help you identify potential opportunities in the market. I see many traders miss these signals because they don’t fully grasp how PO3 works in practice.