You were not wrong about the direction; you were just a victim of the **Market Cycle**. Every single day, algorithms follow a specific 3-step script known as **AMD** or **The Power of Three** (**Accumulation, Manipulation, Distribution**).
Understanding this cycle allows you to stop being the **"Liquidity"** and start trading with the House.
1. The Institutional AMD Cycle
This cycle governs daily price action, moving from consolidation to engineered expansion.
SVG 1: The Daily AMD Cycle (Phases of Institutional Order Flow)
2. The Manipulation Phase: Judas Swing and Liquidity
The **Manipulation** phase (often the **Judas Swing**) is a sudden, aggressive move in the **opposite** direction of the true trend, designed to push the price down to trigger retail Sell Stops (Liquidity).
- **The Trap:** Retail traders sell the breakout of the Asian Range low and get trapped.
- **The Buy:** Banks buy up all those sell orders at a **Discount** price, creating the Low/High of the Day.
3. The OHLC Secret and Risk Rule
Every single Daily Candle reveals this AMD story. The **Low** is typically created by the **Manipulation** (fake drop) and the **High** by the **Distribution** (true rally).
SVG 3: OHLC Secret and Discount Pricing (Risk Filter)
4. AMD Strategy and Execution
**Discipline** is key: **Do not chase** the initial move. **Wait for the drop** (Manipulation) before entering.
SVG 2: The Bullish AMD Setup (Execution Checklist)
Final Thoughts
The **AMD cycle** is the heartbeat of the market. Next time you open your chart, ask yourself: *"Are we in Accumulation, Manipulation, or Distribution?"* If you can't identify the phase, do not trade. You are likely in the Accumulation phase, waiting to be chopped up. Monitor the structural flow of the market via the Realtime Market Dashboard.
