I've been observing for a while how many traders talk about PO3 but few truly understand how it works. So I will share my view on this pattern, which I consider quite useful for reading the market.

PO3, or Power of Three as we know it, is divided into three key phases that form what we call AMD. Let me break it down because it's simpler than it seems.

First is Accumulation. In this phase, you typically see three resistances and three supports. These three peaks represent three consecutive rejections of the price at the resistance zone, while the three supports are three failed attempts to fall. If the market has strength, it breaks through these three resistances and moves higher. If not, it falls and destroys all those support levels. It's quite mechanical when you see it on the chart.

Next comes Manipulation, which is where the market's dark magic happens. This phase can last two or three months, and this is where smart money plays dirty. They create false moves to confuse retail traders, triggering their stops, liquidating small positions. Meanwhile, the big players are quietly accumulating. You see thousands of traders abandoning the market here, losing everything in the process. It is during this PO3 stage that many give up just before the real move.

Finally, Distribution is the official bull run. Although on shorter timeframes it may look sideways, that depends on whether we are in an uptrend or downtrend. This is when everyone distributes their bags and takes profits.

Looking at BTC right now, it’s at $69.71K with a +3.51% increase in 24 hours. On the 1-hour chart, I see sideways movement that could be forming this PO3 pattern. The next moves will be key to confirm whether we are in the manipulation phase or already transitioning into distribution. This is what makes PO3 analysis interesting, as it provides a framework to understand what is really happening in the market instead of just reacting to the price.