Monday, May 30, 2022

Daily Range = Accumulation + Manipulation + Expansion + Distribution (AMD)

Accumulation (A) of positions generally occurs during the Asian session. The accumulation is characterized by being a consolidation.

Manipulation (M) usually occurs at the opening of the London session (sometimes at the NY open). It consists of taking the price to the opposite side of the true directional Expansion of the rest of the day.

Distribution (D) occurs when Market Makers liquidate (exit) their positions.

This AMD-Principle is represented in every bar of every time-frame (monthly, weekly, daily, 4 Hour, etc.) with a price value at which it starts trading (opening price), the highest price value (high), the lowest (low), and  a value of the time it ends trading (close). The AMD-Principle can be observed in all financial markets - Forex, stocks, indices, commodities, bonds, etc.

Michael J. Huddleston a.k.a. The Inner Circle Trader:
“The origin behind this idea was inspired by my mentor Larry Williams.
He made a point in one of his lectures that he wished he knew
how traders could be buying below the open on an up day or sell above the open on a down day.
And I took that as a personal challenge, and spent the first quarter of my 25 years
of my career as a trader mastering just that concept.
I felt that it was enough for me to work towards cracking that code.
And I think I've done it.”
See also:

Who Owns Bitcoin