1. Accumulation
What Happens?
Smart money (institutions) accumulates large positions quietly, ensuring they don’t move the market significantly.
This occurs in a range-bound phase (consolidation) where prices trade within support and resistance levels.
How to Spot?
Look for low volatility and decreasing volume.
Price shows little directional movement, forming tight ranges.
Wyckoff patterns like "Spring" may appear, where price briefly dips below support to trap sellers.
What to Do?
Identify the range and mark key support and resistance levels.
Avoid trading during this phase until a breakout or manipulation begins.
2. Manipulation
What Happens?
Smart money manipulates the market to create liquidity. They do this by triggering stop-loss orders or inducing retail traders into positions.
This phase includes fake breakouts, sharp moves, and increased volatility.
How to Spot?
Sudden price spikes through key levels (e.g., above resistance or below support), followed by a reversal.
Bull and bear traps occur to lure traders into the wrong side of the market.
Increased volume during these moves indicates institutional activity.
What to Do?
Be cautious of chasing moves during this phase.
Wait for confirmation of the manipulation ending, often signaled by a return to the accumulation or breakout levels.
3. Distribution
What Happens?
Smart money distributes their positions at premium prices, typically after manipulating the market to push prices higher or lower.
This is the phase where trends (upward or downward) are fully established and driven by momentum.
How to Spot?
Strong directional moves with increasing volume.
Breakout of the previous accumulation range, confirmed by a retest.
Trend continuation patterns like higher highs and higher lows (uptrend) or lower highs and lower lows (downtrend).
What to Do?
Enter trades in the direction of the trend, ensuring confirmation.
Use tools like Fibonacci retracements and extensions to identify profit targets.
Follow proper risk management to capitalize on the trend without overexposing.
Practical Trading Tips for AMD Strategy
Combine with ICT Concepts: If you use ICT strategies, align AMD with tools like liquidity zones, order blocks, and fair value gaps.
Key Levels: Focus on institutional levels like psychological levels, daily/weekly highs and lows, and previous session levels.
Timeframes: Use higher timeframes (H1, H4, or Daily) to identify AMD phases and lower timeframes (M5, M15) for precise entries.
Patience: AMD requires waiting for each phase to develop; avoid impulsive trades.
What Happens?
Smart money (institutions) accumulates large positions quietly, ensuring they don’t move the market significantly.
This occurs in a range-bound phase (consolidation) where prices trade within support and resistance levels.
How to Spot?
Look for low volatility and decreasing volume.
Price shows little directional movement, forming tight ranges.
Wyckoff patterns like "Spring" may appear, where price briefly dips below support to trap sellers.
What to Do?
Identify the range and mark key support and resistance levels.
Avoid trading during this phase until a breakout or manipulation begins.
2. Manipulation
What Happens?
Smart money manipulates the market to create liquidity. They do this by triggering stop-loss orders or inducing retail traders into positions.
This phase includes fake breakouts, sharp moves, and increased volatility.
How to Spot?
Sudden price spikes through key levels (e.g., above resistance or below support), followed by a reversal.
Bull and bear traps occur to lure traders into the wrong side of the market.
Increased volume during these moves indicates institutional activity.
What to Do?
Be cautious of chasing moves during this phase.
Wait for confirmation of the manipulation ending, often signaled by a return to the accumulation or breakout levels.
3. Distribution
What Happens?
Smart money distributes their positions at premium prices, typically after manipulating the market to push prices higher or lower.
This is the phase where trends (upward or downward) are fully established and driven by momentum.
How to Spot?
Strong directional moves with increasing volume.
Breakout of the previous accumulation range, confirmed by a retest.
Trend continuation patterns like higher highs and higher lows (uptrend) or lower highs and lower lows (downtrend).
What to Do?
Enter trades in the direction of the trend, ensuring confirmation.
Use tools like Fibonacci retracements and extensions to identify profit targets.
Follow proper risk management to capitalize on the trend without overexposing.
Practical Trading Tips for AMD Strategy
Combine with ICT Concepts: If you use ICT strategies, align AMD with tools like liquidity zones, order blocks, and fair value gaps.
Key Levels: Focus on institutional levels like psychological levels, daily/weekly highs and lows, and previous session levels.
Timeframes: Use higher timeframes (H1, H4, or Daily) to identify AMD phases and lower timeframes (M5, M15) for precise entries.
Patience: AMD requires waiting for each phase to develop; avoid impulsive trades.
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