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Strategy Library
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1. AMD Session Model

Accumulation, manipulation, distribution: fade the false move after a quiet range.

2.What it is

The AMD (Power of Three) model describes a session as three phases: a quiet accumulation range, a manipulation move that sweeps one side of that range, and a distribution move in the opposite direction. This strategy trades the distribution after the manipulation closes back inside the range.

In simple words

First the market is quiet and moves sideways. Then it makes a false move beyond one side to trick traders. Then it goes the other way for real. We wait for the false move to fail, then trade the real one with the stop above the false move.

3.Why it may work

Quiet ranges build resting orders on both sides. A sweep of one side can trigger those orders and clear the way for the opposite move. Whether a given day follows this pattern is uncertain, so the model must be tested and skipped when it does not appear.

4.Best market conditions

  • A clear, tight range (often in the Asian session)
  • A sweep of one side during a more active session (London or New York)
  • A candle closing back inside the range
  • A structure shift after the sweep

5.When NOT to trade it

  • No clear range formed
  • Price closes beyond the range and holds
  • The sweep is enormous so the stop is too wide
  • High-impact news at the open

6.Timeframes

Entry: 15M, 5M · Context: 1H

Mark the range on the 1H chart; trade the sweep and the reversal on the 15M or 5M chart.

7.Entry rules and step-by-step setup

Entry rules

  • The sweep closed back inside the range
  • A structure shift confirms the new direction
  • Enter on the first pullback with a reaction candle

Step by step

  1. 1.Mark the high and low of the quiet range
  2. 2.Wait for a sweep of one side in an active session
  3. 3.Wait for a close back inside the range
  4. 4.Look for a structure shift in the opposite direction
  5. 5.Enter on the pullback; stop beyond the swept extreme
  6. 6.Target the other side of the range or beyond

8.Stop loss

Beyond the extreme of the manipulation move. A new extreme invalidates the idea.

9.Take profit

The opposite side of the range, then the next liquidity; a fixed 2R is the minimum.

10.Risk / reward

At least 1:2. Ranges are often wide enough for 1:3, but verify on your market.

11.Confirmation

  • A strong candle closing back inside the range
  • A lower-timeframe change of character
  • The session window matches your market's active hours

12.Invalidation

  • A close beyond the manipulation extreme
  • Price holds outside the range for several candles

13.Common mistakes

  • Forcing AMD on every day
  • Entering during the sweep
  • Using the wrong time zone for sessions
  • Skipping the structure shift

14.Example chart

AMD Session Model example chartAccumulation (quiet range)Range high (liquidity)Manipulation (sweep)Close back insideDistributionEntry (sell)Stop (above sweep)Target 1:2
A quiet range (accumulation), a spike above its high (manipulation) that closes back inside, then a move down (distribution). An illustrative diagram drawn by Bahari Academy: not real market data and not a prediction.

How it performed in our own backtests

LEARNING

Not backtested: this is a concept or discipline framework that our rule engine cannot express yet. Learn it, practise it in challenges, and treat it as unproven.

Past and backtested results never guarantee future results. Nothing on this page is financial advice.

15.Quiz

1. In AMD, manipulation is:
2. The distribution phase typically moves:
3. A sensible attitude to AMD is:

16.Practical challenge

Look for a range, a sweep and the move that follows in an intraday challenge.

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