# ICT Power of Three (AMD) and the Judas Swing · DT Academy

> ICT power of three (AMD) and the Judas swing as a rule you can test live: a quiet open, a false move past the midnight open, a close back, the run.

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Lesson 10Power of three, AMD and the Judas swing

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# Power of three, AMD and the Judas swing

Lesson 10 · 5 min read · By DT Terminal

Read a day as accumulation, manipulation and distribution, and write the Judas swing as a rule you can apply while it happens.

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Chapter 1 of 6

## One candle, three phases

**Power of three** (PO3) reads a daily candle, or a session or a weekly one, as three phases in a row:

- **Accumulation**: a quiet range near the open.
- **Manipulation**: a move against the day's eventual direction that takes liquidity.
- **Distribution**: the main move.

Traders shorten it to **AMD**. On a bullish day the low tends to form early and the close near the high; a bearish day is the mirror. The idea overlaps with Wyckoff's much older accumulation, distribution, spring and upthrust.

Bullish day one daily candle, and the path that made it

Chapter 2 of 6

## The reference: the midnight open

ICT treats the price at 00:00 New York as **the day's "true" open**. On a bullish PO3 day the manipulation leg trades below it and the distribution finishes above it. On a bearish day, the reverse.

It **follows US daylight saving**: 05:00 UTC in US winter, 04:00 UTC in US summer. Set your chart to New York time, or convert once per season. The windows around it come from [The ICT clock: sessions and killzones](https://www.thedtterminal.com/academy/ict-sessions-and-killzones).

**The open is a line, not a signal.** Price above or below it tells you which side of the day you are on, **not which side the day will finish**.

Chapter 3 of 6

## The Judas swing

The **Judas swing** is the manipulation leg at a session open: a false move away from the midnight or session open that **runs stops, then reverses**. Traders mark the obvious levels it could reach for: the Asian range, or the quiet range after midnight.

It is a sweep in the sense of [Liquidity the ICT way](https://www.thedtterminal.com/academy/ict-liquidity): a wick beyond a known low, then a close back. If price closes beyond and keeps going, it was **a run, not a Judas swing**.

ICT describes the move as deliberate. Nothing public shows who is behind it, so this lesson only uses what you can see: the level, the wick and the close.

Chapter 4 of 6

## Bullish and bearish AMD days

Here are three ways a day can open, bullish and bearish. **Only the top row** is power of three as written. The middle row is a perfectly normal day the model has nothing to say about, and the bottom row is the one that traps a buyer.

Power of three

### AMD days, and the days that only look like them

- Quiet range (A)
- The open

Bullish day

low early, close near the high

Bearish day

high early, close near the low

Textbook AMD

quiet open, a false move, then the run

Trend from the open

no false move: the low is the open

The false move kept going

no close back over the open

**Cover the right half of each cell.** At the moment price first trades under the open, the top row and the bottom row look the same.

Schematic candles, not market data. A, M and D mark accumulation, manipulation and distribution.

That is the **hindsight problem**. Every finished daily candle can be told as PO3, so a pile of finished charts proves nothing. The test is whether you can name the manipulation leg **while it is happening**.

Chapter 5 of 6

## Write it as a rule

A testable Judas swing, on `M15` and New York time: price **trades below the midnight open** and below the low of the quiet range from 00:00 to 02:00, then an `M15` candle **closes back above the midnight open** before 05:00. **Both parts**, or it is not one.

Worked example

### Example 01: `EURUSD` M15: the rule says Judas swing

The worked example, with every number walked through, is in the app.

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**Go deeper**

In Example 01 the drop reached 1.08440, and the 03:45 candle closed at 1.08702, just back above the open.

Chapter 6 of 6

## When the rule says no

Same rule, same start. It never fires.

Worked example

### Example 02: `GBPUSD` M15: the same start, no Judas swing

The worked example, with every number walked through, is in the app.

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Call it bar by bar in the backtester

Replay twenty days of one pair on `M15` from 00:00 New York. At 05:00, call Judas or not, then play on.

Tag the trades that used it

Tag trades after a Judas swing `Judas`, and drops that missed the rule `No reclaim`.

**Go deeper**

In the backtester, check afterwards how many Judas days closed above the open. In the Trade Log, filter by each tag after a month and compare the two in R.

Quick review

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