by: Jayfx We all understand that price is fractal right, but can only make 3 different moves, either a TREND, REVERSING OR CONSOLIDATING. When it comes to technical analysis, data is needed and we all understand this is why the higher timeframe is important because they present more data for more accurate future predictions of the market. Now this patterns where created to aid in simplifying the higher timeframe date for technical data.

HOW THIS PATTERNS WHERE DRAFTED

According to Wyckoff, the market can be understood and anticipated through detailed analysis of supply and demand, which can be ascertained from studying price action, volume and time.

Smart money concept; on the other hand is a concept of supply and demand which is a concept based on 4 major points; Market structure, Price Range (order flow), Imbalance and liquidity.

Market structure; Market structure is defined as the simplest form of price movement reading from a swing high to a swing low creating internal (mini) structures along the way. Market structure is a trend following tool so it's read off the trend of the market creating a HH and LH or a LL and HL.

ABOUT THE POWER OF THREE PATTERN

The power of 3 is a system mainly used for higher timeframe trend confirmation, but with proper understanding can be used on the lower timeframe as confirmation also.

This was created to help in spotting an internal liquidity grab (retracement) from a reversal and to simplify the Wyckoff method of trading to be able to spot the right trend, change in structure for joining the right trend in a continuation, and spotting a reversal from an internal liquidity grab in an early stage.

This concept was derived first from the ICT market maker method concept of 3 and tested on Wyckoff Schematics and SMC Liquidity

DRIVE OF P.O.3 PATTERNS

This concept was derived off the concepts of 3 by ICT in the market maker method, which states that "Every schematic has 3 drives before a change in trend or structure, if price fails to reverse after the 3rd drive the trend can continue". This concept simplifies a lot and made identifying continuation trend on the smart money concept a lot easier. When later tested on Wyckoff it gave a reversal concept which developed the patterns presented on this book which are the major basic patterns.

KEY FOCUS WHEN LOOKING FOR P.O.3 Market Structure

-Weak and strong High/Low -Premium and discount -Supply and Demand -Fair value GAP (FVG) // Imbalance -Liquidity (Internal/External)

CONTINUATION PATTERNS

POINT 1 (P1):