Introduction to Po3

This is not an everyday model that we look for intra-day. In simple terms, what majority of you may be familiar with are the concepts of Accumulation, waiting for manipulation and then looking for a period of distribution.

This goes hand in hand with where our focus lies, which is the daily candle, our 24-hour period. We simply look at where our trading period starts, and where out trading period ends.

Open too low too high and too close.

OLHC;

• - Opening price "The initial valued price - Prior to Imbalance"

• - Closing price "The ending value price - After/post to imbalance"

• - Range expansion "Dynamic price imbalance - The part in-between open and close"

Accumulation

When it comes to accumulation, we want to figure out what is accumulating. If we are bullish on the market the goal is to figure out what would be accumulating to the upside and where, the building up of long positions in this case.

Around opening price, price will start accumulating orders -> Liquid price action, and market making capable participants are transacting at these levels. Positions are being accumulated.

Manipulation

let’s debunk this first - Manipulation does not happen. This is why I decided to make sure we did this after a small introduction on pressure. Imagine we are in a bullish stage, and our goal is to see a bullish range expansion that day.

Ideally, we want to see a manipulation cycle right after the NY midnight opening price.

“In other words -> Buying around, or below NYMNO price”

This is because pressure lies around these levels. Market making capable participants will actively attempt to build short liquidity to push price below old lies, IE getting better prices for their longs.

“Short liquidity builds pressure to go lower. So, market making capable institutions can buy back at lower prices. Repricing below the previous lows. (deep discount)”

The situation that happens sometimes is when expecting bullish daily expansion, price will expand, then drop lower. There is no statistic on which happens first, All the know is that at a bullish expansion, during this manipulation, price will neutralize long liquidity regardless.

Distribution

This is the concept which appeals most to be, as this falls hand in hand with order pairing and distributing volume. This is where current market making capable participants will pair their long exits with pending buy interest.

This goes in hand with a form of buying above old highs -> BSLQ. Where pressure gets created. Price will break these previous highs, which entices other traders, market making capable to position themselves for the next day "if anything". The already positioned market making capable participants, will be looking to sell their long positions to the breakout traders.

Another situation arises when there is already pressure at the highs, with increased intent to move lower from short positions. The currently positioned participants will aim to run through that liquidity, pairing their long exits with short-term intraday highs where selling pressure exists. This leads to the onset of distribution.

Bearish example

“Same as bullish, just dinerent order”

This goes hand in hand with where our focus lies, which is the daily candle, our 24-hour period. We simply look at where our trading period starts, and where out trading period ends. Open too high to low to close.

OHLC

• - Opening price "The initial valued price - Prior to Imbalance"

• - Closing price "The ending value price - After/post to imbalance"

• - Range expansion "Dynamic price imbalance - The part in-between open and close"