The AMD model in trading stands for Accumulation, Manipulation, and Distribution. It describes how institutional traders, often called smart money, move the market to collect liquidity and position themselves before the real trend begins.
In the accumulation phase, the market moves sideways and builds liquidity above and below the range. This phase is used by smart money to quietly enter positions while retail traders get impatient, waiting for a breakout. Liquidity builds up at both ends of the range, creating potential stop zones for future manipulation.
Next comes the manipulation phase, which is when the market makes a false move. Price breaks out of the range, sweeping liquidity and triggering breakout traders who believe a new trend has started. In reality, this move is designed to trap traders and collect their stop losses. Once that liquidity is taken, the market usually reverses in the opposite direction — this is where smart money starts positioning for the true move.
Finally, the distribution phase is the real directional move after manipulation. Here, the market shows a clear break of structure, and momentum shifts strongly in one direction. This is when smart money distributes their positions for profit, while late traders are often caught on the wrong side.
The AMD model repeats across all timeframes — from daily to one-minute charts — and helps traders understand the logic behind market moves. To trade using AMD, you identify the range (accumulation), wait for the liquidity sweep (manipulation), and then enter after confirmation of the new trend (distribution). This model is simple but powerful, as it shows how liquidity, structure, and market psychology combine to create the rhythm of price movement.
In the accumulation phase, the market moves sideways and builds liquidity above and below the range. This phase is used by smart money to quietly enter positions while retail traders get impatient, waiting for a breakout. Liquidity builds up at both ends of the range, creating potential stop zones for future manipulation.
Next comes the manipulation phase, which is when the market makes a false move. Price breaks out of the range, sweeping liquidity and triggering breakout traders who believe a new trend has started. In reality, this move is designed to trap traders and collect their stop losses. Once that liquidity is taken, the market usually reverses in the opposite direction — this is where smart money starts positioning for the true move.
Finally, the distribution phase is the real directional move after manipulation. Here, the market shows a clear break of structure, and momentum shifts strongly in one direction. This is when smart money distributes their positions for profit, while late traders are often caught on the wrong side.
The AMD model repeats across all timeframes — from daily to one-minute charts — and helps traders understand the logic behind market moves. To trade using AMD, you identify the range (accumulation), wait for the liquidity sweep (manipulation), and then enter after confirmation of the new trend (distribution). This model is simple but powerful, as it shows how liquidity, structure, and market psychology combine to create the rhythm of price movement.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.