STANDARD DEVIATION + POWER OF THREE Mentor & Concept Credits: Michael Huddleston + TraderDext3r DISCLAIMER: The information provided in this trading PDF/document is for educational and informational purposes only. It does not constitute financial advice, and no content within this document should be considered as a recommendation or endorsement to engage in any specific trading or investment activity. Trading in financial markets involves risk, and individuals should conduct their own research and seek professional advice before making any investment decisions. The author of this PDF/document does not assume any responsibility for the accuracy, completeness, or relevance of the information provided. All readers are encouraged to consult with a qualified financial advisor or professional before making any financial decisions. Any actions taken based on the information in this PDF/document are at the sole discretion and risk of the reader. By accessing this PDF/document, you acknowledge and agree that the author, publisher, and distributors are not responsible for any losses or damages that may occur as a result of the use of the information presented in this document. The content is provided "as is" without any warranties, expressed or implied. The content of this document may not be accurate, up-to-date, or applicable to individual circumstances. It is advisable to verify any information and seek professional advice before making financial decisions. Table of Contents DISCLAIMER: Introduction Power of Three. How to identify. Standard Deviation: Accumulation Standard Deviation: Manipulation Standard Deviation: Manipulation Framework Think OLHC & OHLC. Standard Deviation: Distribution Distribution: What do we expect? Distribution Silver Bullet Zone Conclusion 2 4 5 6 7 8 9 10 11 12 13 14 Introduction This pdf will be an in-depth guide to Standard Deviations (STDv) and Power of Three (PO3). These concepts were initially outlined/discovered by ICT (Michael Huddleston) however have been taken further with the independent research of TraderDext3r (MonsterLab). I would recommend you read this pdf and refer to Dexter’s MonsterLab Youtube video: Core Standard Deviations + PO3 | ICT Concepts | DexterLab to ensure you are getting the most out of it. Before we dive into the concepts I need to give full credit to Dexter, please see the QR Code for all the links to his social media. Be sure to follow, subscribe and study his content. Who am I? Day trader of Indices & Forex markets 6 years trading experience Primarily trades PO3 during NY AM session Pairs I trade: NAS, SPX & GU Entry Model: 4H PO3 + STDv Student of ICT Power of Three. It all starts with a Power of Three, any PO3… - Monthly, Weekly, Daily, 4H. Elements to a PO3 Accumulation Manipulation Power of 3. Distribution Please see this example of this Monthly PO3 which shows the Accumulation, Manipulation & Distribution phases. This all occurs within a single candle - see the Monthly Candle to the right of the price action. This applies to ANY PO3 candle of your liking. Indicator: ‘HTF Power of Three’ by toodegrees (highly recommend) How to identify. To take advantage of the PO3 you need to know how to identify each phase. It is important to understand where each phase starts and finishes, when one ends the other begins: Opening PO3 Accumulation phase starts, when it ends Manipulation begins, once the Manipulation phase has ended we then move to the Distribution phase. This is crucial as each phase projects the next & we measure this using Standard Deviations! It all starts with an Opening of any PO3 but first, here is what timeframe you should be using to identify each phase of a PO3: Monthly PO3 - Use 4 hour TF to identify Weekly PO3 - Use 1 hour TF to identify Daily PO3 - Use 15m/5m TF to identify 4H PO3 - Use 5m TF to identify Indicators I use: HTF Power of Three° Daye Quarterly Theory Standard Deviation: Accumulation From the Accumulation phase use the highest/lowest price leg before the Market Structure Shift in the opposing direction. Note: During the Accumulation, the lowest discernible range measured from the low to the high will project the Manipulation. The 2-2.5 Standard Deviation zone is used to anticipate Reversals/Retracements. During the Accumulation, the highest discernible range measured from the high to the low will project the Manipulation. The 2-2.5 Standard Deviation zone is used to anticipate Reversals/Retracements. FIB Tool set up: Standard Deviation: Manipulation We anticipate the Manipulation to complete 2-2.5 Standard Deviations but some may be asking, how do I know when this phase has finished? 1. Use HTF POIs within the 2-2.5 STDv 2. SMT Divergence 3. Market Structure Shift Daily PO3 00:00 5m TF DOW 30 - SMT 1. HTF POI (4H>) nested within 2-2.5 STDv 2. SMT Divergence with DOW 30 3. MSS Once all of our boxes have been checked we can confirm that the Manipulation has been completed and now anticipate the Distribution phase. ‘As one phase ends, the other begins.’ Standard Deviation: Manipulation Framework Once the 2-2.5 STDv has been fulfilled during the Manipulation phase you may be confused as the HTF Power of Three indicator will visualise like so: At this moment in time the HTF Power of Three candle will depict a Bearish Candle (of whichever PO3 you are choosing to trade) but we are anticipating that this is the Manipulation. Price is simply making the Low of the OLHC. We are expecting a Bullish Expansion within the Distribution phase. The same applies when you are expecting a Bearish Expansion during the Distribution phase: In the chart above we see a Bullish candle on the HTF Power of Three indicator. We are in the Manipulation phase, price is making the High of the OHLC. Think OLHC & OHLC. OLHC - Open Low High Close OHLC - Open High Low Close Standard Deviation: Distribution To project the next phase, we need to know how to mark the FIB tool and where to anchor to get an accurate projection for the Distribution. Here’s how: For a bullish expansion (distribution) we use the lowest discernible price leg down before the mss. We are using the LAST move of the Manipulation phase that makes the lowest swing. This move projects the Upside for the Distribution. For a bearish expansion (distribution) we use the high discernible price leg up before the mss. We are using the LAST move of the Manipulation phase that makes the highest swing. This move projects the Downside for the Distribution. Distribution: What do we expect? During this phase we expect price to Expand in the opposing direction of the Manipulation phase. We target 2-2.5 Standard Deviation as this is the ZONE for Reversals & Retracements. However IF price closes strong above the 2.5 STDv we can anticipate the Expansion to continue to 4 Standard Deviations. If price fails to close above the 2-2.5 Standard Deviations we anticipate Retracement/Reversals to the Equilibrium Range of the Current Dealing Range from Low to High. To know if price is either just Retracing or if it is entered a Reversal solely depends on the Higher Time Frame premise. The same concept applies, we can use the Highest price leg to project Retracements & Reversals. As seen here: Distribution Silver Bullet Zone We can expect Re-Accumulation/Re-Distribution within the Silver Bullet Zone which will propel price towards 2-2.5 Standard Deviations. What is the Silver Bullet Zone? 1-1.5 Standard Deviation = Silver Bullet Zone This is a very powerful area because price is within its Expansion/Distribution phase and is seeking HTF Liquidity. Within the 1-1.5 STDv we can expect a Re-Accumulation / Re-Distribution to occur. This zone provides an entry of opportunity, I like to wait for two scenarios to unfold. 1. 1-1.5 SBZ Retracement to Internal Range Liquidity (IRL). - This can be ANY IRL. 2. Higher Probability: Taking a trade from Internal Range Liquidity NESTED within the Silver Bullet Zone. Conclusion We can see all 3 phases of the Power of Three and each move can be measured with precision using Standard Deviations. I ask you to backtest this thoroughly like I have and build a strong mind muscle connection as this will be needed to identify moves in live conditions. I would like to thank TraderDext3r (MonsterLab) for the research he has conducted and his willingness to teach and share this approach with others. Toodegrees for making excellent indicators which make this approach easy to visualise and assist in decision making. Of course, ICT is the author of all these concepts, so it cannot go without saying thank you for his discoveries. I hope this has been insightful and you can find value within this short PDF. This was my first time creating something like this and as you can probably tell, I’m no graphic designer. I am a trader. Feel free to give any feedback and if you want to ask any questions you can DM me @po3trader on X. Thank you -po3