The Power of Three Indicators is a powerful tool in MetaTrader 5 that showcases three key concepts Accumulation, Manipulation, and Distribution, based on the Smart Money trading strategy. Each concept sequentially indicates price stability, trading volume, and price direction.
The chart shows areas marked with red boxes representing accumulation zones, while green boxes indicate manipulation zones.
This signal and forecast indicator issues buy (Long) signals with a green arrow and sell (Short) signals with a red arrow.
Indicator Specifications Table
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Indicator Categories:
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Smart Money MT5 Indicators
Signal & Forecast MT5 Indicators
ICT MT5 Indicators
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Platforms:
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MetaTrader 5 Indicators
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Trading Skills:
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Intermediate
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Indicator Types:
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Reversal MT5 Indicators
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Timeframe:
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Multi-Timeframe MT5 Indicators
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Trading Style:
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Scalper MT5 Indicators
Day Trading MT5 Indicators
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Trading Instruments:
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Forex MT5 Indicators
Crypto MT5 Indicators
Stock MT5 Indicators
Commodity MT5 Indicators
Forward MT5 Indicators
Share Stock MT5 Indicators
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Indicator at a Glance
The Power of Three Indicator analyzes and evaluates zones with high-profit potential, using three profiles, Accumulation, Manipulation, and Distribution, to generate trade entry signals.
This tool is applicable across all financial markets, including cryptocurrencies and forex. It is commonly used in trading styles based on price action, such as Smart Money and ICT.
Power of Three Indicators in an Uptrend
According to the 1-hour price chart of Bitcoin (BTC), a distribution area is identified if the difference between the top and bottom of the blue box is less than the Average True Range (ATR).
When the price exits this range, it enters the manipulation phase, and immediately after, a buy signal (Long) is issued.
Power of Three Indicators in a Downtrend
In the 4-hour price chart of the GBP/USD currency pair, red arrows indicate signals for entering sell (Short) trades.
The indicator issues these signals immediately after the price exits the manipulation zone marked by the green box.
Indicator Settings
- Theme: Indicator Theme;
- ATR Period: Average True Range of 14 periods;
- A multiplier of Last: ATR period multiplier of 1.5;
- Accumulation Period: Accumulation phase duration of 25;
- Manipulation Swing: Manipulation range of 3.
Conclusion
The Power of Three Indicator is designed based on three profiles Accumulation, Manipulation, and Distribution.
Analyzing these three profiles provides reliable signals for entering buy (Long) and sell (Short) trades. It should be noted that the Smart Money indicator for MT5 falls under this trading tool category.
In which timeframe does the Power of Three Indicator issue trade signals?
This indicator issues entry signals across all timeframes; however, signal frequency is higher in shorter timeframes, such as 5 minutes, 15 minutes, and 1 hour.
Does using this indicator require high skill levels?
While the Power of Three Indicator automatically generates trade entry signals, having experience with liquidity-based trading styles enhances its effectiveness.