AMD Pattern Explained & Confirmed on NQ | Live Session + Real Market Example

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Video Transcript:

So let’s assume that this is a “right” in AMD. This is the A that’s building up, okay? We can call this an A if the M part actually comes and takes this low. That would be a logical M, and then if you see a reversal, then absolutely D, which will very likely take this—at least take this high—which is going to be the opening range high as well, if you look at it on this chart. But for it to qualify as an A, M has to be outside this range, which is the equal lows that we have here. Okay, so that’s just looking at it.

Now let’s just look at another scenario on a minute chart. So again, we can see the market the way we want to see it. That’s the beauty of charts. But if we apply logic and then see what the market is telling us, that makes all the difference. So this is a 15-minute A-M and then potentially D-U.

Now let’s play devil’s advocate. Let’s say the price doesn’t get here. What could be a potential A, M, and D on this chart? It can be… this entire area so far from the opening range can be the A. What can be the M here? Taking this minor sell-side, getting into this order block, and then reversing. Okay, so the key would be to measure whatever process we have. This reversal—we need a strong reversal, we need strong signatures here. And then the D is going to complete and culminate here.

Hey guys, just thought of doing a clip once the market is closed—at least during regular hours—and revisiting what we talked about during the live session earlier in the day today. I was talking about the concept of A-M-D: Accumulation, Manipulation, and Distribution. As we were discussing, we were seeing this accumulation, and we wanted to see manipulation downwards just because we have drawn liquidity higher. So, if the draw on liquidity is higher, what we need to look for is the manipulation target before the actual distribution happens. That sort of completes the cycle.

We were talking about, one, this area; two, a strong reversal signature that we saw here with a strong wick and then a force in the bullish direction. So really, this was a very classical case of accumulation, manipulation, and distribution—when your drawn liquidity is extremely clear, which it was higher in the day. Then we set out some manipulation targets and a strong reversal.

If you analyze this price action from earlier today, all these criteria were met. The distribution culminated at the opening range high. Obviously, it went higher, but I just want to keep it to this for you all to understand and appreciate the concept of AMD.

So that’s about it for now, and I’ll see you in the next one.

Hey everyone, it’s Dale here. I hope you enjoyed the video. If you’d like to trade alongside me and our team of prop firm funded traders every day, then click the link below the video and hop aboard. We’re looking forward to trading with you.

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