The Power of Three (PO3) Model — ICT’s Blueprint for Market Moves

The Power of Three (PO3) model, developed by ICT (Inner Circle Trader), divides market behavior into three recurring phases — Accumulation, Manipulation, and Expansion. This simple yet powerful concept explains how institutions engineer price movement to accumulate positions, trap liquidity, and drive large directional moves.

During the Accumulation phase, price consolidates as institutional players build positions. This often appears as a range or sideways structure, lulling retail traders into false confidence while smart money prepares for the real move.

The next phase, Manipulation, occurs when price sweeps liquidity above or below the range — triggering retail stop losses or breakout entries. These engineered moves collect liquidity and mislead the crowd into taking the wrong side of the market.

Finally, the Expansion phase begins — the true move in the direction of institutional intent. This is where momentum accelerates, creating high-probability entries for traders aligned with Smart Money logic.

Recognizing PO3 in real time allows traders to anticipate where and when large moves originate. By combining PO3 with liquidity mapping and order block structure, traders can forecast reversals before they occur — transforming market chaos into a predictable rhythm of institutional flow.