PO3: The Three-Phase Strategy Every Trader Needs to Know

Have you heard of PO3? It is one of the most interesting market analysis techniques, especially for those who want to understand the real cycles of Bitcoin and other coins.

PO3 stands for Power of Three and operates in three distinct phases: AMD (Accumulation, Manipulation, and Distribution). Let's break this down:

The Accumulation Phase: The Beginning

This is where the big players start working silently. The typical structure includes:

• 3 levels of resistance ( where the price hits and retracts )
• 3 levels of support ( where the price holds before dropping further )

When the market is ready, it breaks through these three resistances and rises. Otherwise, the supports collapse and the price plummets.

The Manipulation Phase: The Dirty Game

This is the part that hurts small traders the most. It lasts about 2-3 months and is pure theater: smart money drives the price down to trigger retail stops, creating artificial liquidity. While the small ones lose everything in liquidations, the big players accumulate positions.

The pattern: price falls → retail gets scared and sells → big players buy cheap → price rises again. This is how wealth changes hands.

The Distribution Phase: The Rise

This is officially the bull run. Accumulators start selling on the rise, while the media screams that it is time to get in. In shorter time frames, it may look like sideways movement, but the larger trend says it all.

The Current Scenario

At the time of writing, Bitcoin is forming exactly this PO3 pattern on 1h charts, with sideways movement on the 15-minute timeframe. History repeats itself, always.

Moral of the story: understanding PO3 is not about predicting the future, it's about recognizing when you are being manipulated.