PO3 STOP RUNS

Power of three stop runs can come into 2 shapes.

Either it’s a real stop run of the buy - or sell side liquidity.

You’ll typically see a stop run under an old low or above an

old high of 3, 9, 27, 81, 243 pips, depending on the time
frame.

Or price stops at a certain level, most likely a dealing range

high or low, and will create a wick of a PO3 size, so a wick of
3, 9, 27, 81, 243 long.

If this is the case, you now have a valid rejection block, and
the open or close of the rejection block can be used to enter
a trade.

Later in this book you can read some additional information

about PO3 stop runs. Have a look for the external range
demarker section.

I like to see PO3 stop runs within a PO3 dealing range of the
smaller number, like 3, 9, 27.
Certainly when there’s a short term high or low just resting
under a Goldbach level.

This is something I heavily use in my personal trade plan you

nd at the end of the book.

For PO3 stop runs outside of the current size PO3 dealing
range, I like to see a stop run of that PO3 - 2 level. So let’s say
we’re using a PO3 729 dealing range, I like to see a PO3 - 2 =
81 stop run.

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Reason for this is that the stop run level aligns with the next
or previous PO3 partition’s Order block level, where the fair
value will start (GB level 11 and 89).

Below is a 729 PO3 dealing range with the 81 stop run levels
marked in orange.

Use following settings to mark the PO3 dealing range stop

run levels.

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 A 27 PO3 stop run

Above you can see the 27 pip stop run on the sell side
liquidity.

Price rejects, breaks an old short term high, forms an OTE to

go long

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 A wick of a PO3 number

Above you can see an up close (green) bar with a large wick.
This wick comes in the form of a 27 PO3 size.

This con rms our rejection block, and the next candle can be
used to enter a long position.

The trade closed the gap/traded into a breaker

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PO3 LIQUIDITY
In part 2 of the book, you will learn about Goldbach levels,
aka Huddleston levels.
These are basically your IPDA levels as taught by ICT.

Now, you will very often see that we run short of the
Goldbach level, leaving liquidity.

I consider the Goldbach levels the “real” support and

resistance levels, and expect price to at least hit them.

So when you see price stops a PO3 number (typically 3 or 9

pips/handles) short of a Goldbach level, expect we will see a
PO3 stop run to clear this liquidity.

So we might have 3 pips liquidity short of a Goldbach level,

and a 9 pip stop run into the Goldbach level to clear this
liquidity.

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Here you can see price created a short term low, short of the
Goldbach level.

This is your PO3 liquidity. Price drove back up, to later drive
down, with a 9 pip PO3 stop run, into the Goldbach level,
clearing out the 3 pip PO3 liquidity.

So the paradigm here is:

1: We want to see a Goldbach level (more in Part 2 of the

book)
2: that is not traded to yet, and a short term low of high is
created above or below the level, of a certain PO3 size
3: and this liquidity is later run using a PO3 stop run

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RANGE EXPANSION AND
CONTRACTION
Range expansion and contraction is when the current PO3
dealing range is not su cient anymore.

This is a concept I use with stocks, or new assets like bitcoin

for instance.

Other than using a PO3 dealing range as seen above, which I

use for forex and indices, to see what current PO3 partition
we’re in, here we just use the real PO3 numbers.

We start with one of the smallest PO3 numbers, for example

9. If price moves out of this range we do a range expansion,
and we take the next PO3 number, which is 27.

If this range is breached to the upside, we will do another

range expansion, and we’ll take 81, 243, 729, …

If price retraces however, and we continue to make lower

prices, we do a range contraction.

Let’s say we were in the 243-729 price range, but price

moved below the 243 price range, we will now consider the
range 81-243 as our main dealing range.

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On this bitcoin chart, you can see price moved out of the 81
dealing range, and the range 81-243 was used

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 Next, we see that the 243-729 was used. Price broke the 729
level, and did a PO3 stop run and went back into the range
de ned by 243-729

Later on, the 2187 and 6561 were breached, and price had a
hard stop at exactly 19683.

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GETTING TO KNOW PO3
DEALING RANGES
Before you continue with the next chapter, it is a good idea to
get familiar with the PO3 dealing ranges.

One might want to create a chart with just a number of

dealing range partitions on it, for a given number.
So only with the high and lows on it, and see how order
blocks are getting created around these levels, and how gaps
are created in the middle of the partitions.

Above is a screenshot of EU with a number of 81 PO3 dealing

range partitions on it.
You can see the order blocks and gaps, and how they act as
support and resistance.

In the next part, we will de ne the IPDA levels inside these

partitions, in order to not get lost, focus on this part rst.
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WHAT YOU LEARNED IN THIS CHAPTER
What are Power of three numbers
How to calculate PO3 dealing ranges and calculate the
most optimal ones to use for your trade plans
Understand PO3 partitions
What does it mean to stay in the range
What are PO3 stop runs and how they work in concert
with PO3 liquidity
What is range expansion and contraction
How this will be the building block which we will re ne
further

ICT:
I SEE T(HR)EE… EVERYWHERE

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CHEAT SHEETS
CALCULATING OPTIMAL PO3 SIZE
Remember: “big boys” trade with Daily and weekly chart
in mind
Check the W, D or 4H chart for the last couple of weeks
If you are a position trader, use the D or W charts. For
scalpers, day traders, use the 4H chart
Move the rectangles around,
Use a few PO3 sized rectangles: 81, 243, 729, … and see
what PO3 size the most obvious swings are, where the
most obvious reaction points are
Use this PO3 going forward
Do this every month to calibrate price with current action

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 CALCULATING DEALING RANGE
Your PO3 number you’re going to use is calculated in
previous cheat sheet
You determine the current price. Open a chart for your
asset and just take the price that currently prints
Don’t make it complex by using 00:00 EST open price,
Friday’s range, … Current price is enough
Determine your dealing range low using the formula
de ned above in the book using the PO3 number and the
current price
Now with the calculated dealing range low, add your PO3
number, this will be your dealing range high
Include a decimal point again if the formula said to remove
it, at the exact same place

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WHEN TO DO RANGE EXPANSION
If price goes out of your dealing range
And does a PO3 stop run regularly, (eg you have a 243
dealing range, with a 27 PO3 stop run)
This can indicate 2 things.
Either your dealing range is too small, and you need to
recalculate the most optimal dealing range
Or your dealing range is still in line with the optimal PO3
size, and price will move to the next partition
If price is consolidating, will see often PO3 stop runs, and
price goes back into the range
This might indicate you are in the middle part of a larger
PO3 range, eg a 243 PO3 dealing range, and you are in
the middle 81 PO3 partition

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