XAMD/AMDX ICT 01 [TradingFinder] SMC Quarterly Theory Cycles

3 日前

🔵Introduction

The XAMD/AMDX strategy, combined with the Quarterly Theory, forms the foundation of a powerful market structure analysis. This indicator builds upon the principles of the Power of 3 strategy introduced by ICT, enhancing its application by incorporating an additional phase.

By extending the logic of Power of 3, the XAMD/AMDX tool provides a more detailed and comprehensive view of daily market behavior, offering traders greater precision in identifying key movements and opportunities

This approach divides the trading day into four distinct phases: Accumulation (19:00 - 01:00 EST), Manipulation (01:00 - 07:00 EST), Distribution (07:00 - 13:00 EST), and Continuation or Reversal (13:00 - 19:00 EST), collectively known as AMDX.

Each phase reflects a specific market behavior, providing a structured lens to interpret price action. Building on the fractal nature of time in financial markets, the Quarterly Theory introduces the Four Quarters Method, where a currency pair’s price range is divided into quarters.

These divisions, known as quarter points, highlight critical levels for analyzing and predicting market dynamics. Together, these principles allow traders to align their strategies with institutional trading patterns, offering deeper insights into market trends

🔵How to Use

The AMDX framework provides a structured approach to understanding market behavior throughout the trading day. Each phase has its own characteristics and trading opportunities, allowing traders to align their strategies effectively. To get the most out of this tool, understanding the dynamics of each phase is essential.

🟣Accumulation

During the Accumulation phase (19:00 - 01:00 EST), the market is typically quiet, with price movements confined to a narrow range. This phase is where institutional players accumulate their positions, setting the stage for future price movements.

Traders should use this time to study price patterns and prepare for the next phases. It’s a great opportunity to mark key support and resistance zones and set alerts for potential breakouts, as the low volatility makes immediate trading less attractive.



🟣Manipulation

The Manipulation phase (01:00 - 07:00 EST) is often marked by sharp and deceptive price movements. Institutions create false breakouts to trigger stop-losses and trap retail traders into the wrong direction. Traders should remain cautious during this phase, focusing on identifying the areas of liquidity where these traps occur.

Watching for price reversals after these false moves can provide excellent entry opportunities, but patience and confirmation are crucial to avoid getting caught in the manipulation.



🟣Distribution

The Distribution phase (07:00 - 13:00 EST) is where the day’s dominant trend typically emerges. Institutions execute large trades, resulting in significant price movements. This phase is ideal for trading with the trend, as the market provides clearer directional signals.

Traders should focus on identifying breakouts or strong momentum in the direction of the trend established during this period. This phase is also where traders can capitalize on setups identified earlier, aligning their entries with the market’s broader sentiment.



🟣Continuation or Reversal

Finally, the Continuation or Reversal phase (13:00 - 19:00 EST) offers a critical juncture to assess the market’s direction. This phase can either reinforce the established trend or signal a reversal as institutions adjust their positions.

Traders should observe price behavior closely during this time, looking for patterns that confirm whether the trend is likely to continue or reverse. This phase is particularly useful for adjusting open positions or initiating new trades based on emerging signals.





🔵Settings

Show or Hide Phases.

Adjust the session times for each phase:
Accumulation: 19:00-01:00 EST
Manipulation: 01:00-07:00 EST
Distribution: 07:00-13:00 EST
Continuation or Reversal: 13:00-19:00 EST

Modify Visualization: Customize how the indicator looks by changing settings like colors and transparency.


🔵Conclusion

AMDX provides traders with a practical method to analyze daily market behavior by dividing the trading day into four key phases: Accumulation, Manipulation, Distribution, and Continuation or Reversal. Each phase highlights specific market dynamics, offering insights into how institutional activity shapes price movements.

From the quiet buildup in the Accumulation phase to the decisive trends of the Distribution phase, and the critical transitions in Continuation or Reversal, this approach equips traders with the tools to anticipate movements and make informed decisions.

By recognizing the significance of each phase, traders can avoid common traps during Manipulation, capitalize on clear trends during Distribution, and adapt to changes in the final phase of the day.

The structured visualization of market phases simplifies decision-making for traders of all levels. By incorporating these principles into your trading strategy, you can enhance your ability to align with market trends, optimize entry and exit points, and achieve more consistent results in your trading journey.