Inner Circle Trader - The Power of Three - Trading Strategy - Time & Price Theory

Sep 18, 2026

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Trading notes describing a framework based on time and price theory, centered on three major market cycles: accumulation, profit release via range expansion, and distribution. The guidance focuses on understanding how the daily range fills, timing trade holding windows around 12:00 GMT, 15:00 GMT, and 18:00 GMT, tightening stops near London close. It outlines setups using SMT divergence, support/resistance reactions, swing high/low timing, Judas Swing after daily pivots, and disciplined waiting once entry and stop-loss are set. It also recommends using Williams %R and targeting ADR and specific pivot/extension levels.

LanguageEnglish

CategoryTechnology

FormatPDF

Pages2

Reading Time5 min

AccessFree to download

Three major market cycles

Accumulation phase

Profit release phase

Distribution phase

Daily range timing and trade management

Hold windows (12:00/15:00/18:00 GMT)

Stop tightening and reaction zones (London close)

Trade setups and entry methods

SMT divergence and optimal scalp entries

Swing low/high confirmation

Judas Swing after a daily pivot

Indicators and execution focus

Use Williams %R oversold logic

Avoid pip-watching; focus on time

Target ADR and specified levels

The Power of Three Tuesday, December 31, 2013 12:16 AM There are 3 major market cycles and they are: 1. The Accumulation Phase: Smart money is accumulating longs or shorts. 2. The Profit Release Phase: Range expansion move where profit is permitted. 3. The Distribution Phase: Smart money is distributing longs or shorts that it previously accumulated. To make serious money in this business, you need to have an understanding on how the daily range is filled. It is time & price theory based. You want to hold for AT LEAST the New York Open which is 12:00GMT time . The second profit objective in terms of time is 15:00GMT, approximately London Close . The last profit taking time for day trading inside the daily range is 18:00GMT. The daily range is typically fulfilled by this point. 15:00GMT is a good time to tighten the stop. By this time, a lot of the time, we have started consolidating or have had a counter trend London Close reaction. You can look for SMT divergence as price trades right into support or resistance and then look for optimal trade entries to scalp and catch bounces. You can also wait for a swing low to form at that support on the daily chart. If you are a new and/or conservative trader, you would wait for the 5 bar swing high or low to form at support or resistance in order to start looking for a trade direction. On the day after a swing high or low on the daily chart, wait for the Judas Swing to get in a trade in the direction of the swing point. This would mean trading on the day after the 3 day pattern has formed. You don't want to be in such a hurry to get into trades that you get in before the actual setup unfolds. A swing high has formed at resistance, look to trade short on the following day… Don't watch for pips or price, just watch the time . Once you enter a trade and set a stop loss, all you need todo is wait time for it to move . The central banks know where all the stops are . Where is the market most likely to go after the open? Put a 10 period Williams %R on your chart. If it goes oversold and it trades down after the Asian range, the chances are likely that it will be a good long day. If the high doesn't form in Asia, it will form in London open. When day trading, aim for the ADR to be filled, London close time frame, 4 pivot zones traded through, 162% extension, previous day high or low, 18:00 GMT, etc.

FAQs

What are the three major market cycles described in the notes?

They are Accumulation (smart money building positions), Profit Release (range expansion allowing profit), and Distribution (smart money distributing earlier accumulated longs or shorts).

What GMT times are recommended for holding and profit objectives?

The notes suggest holding at least until the New York Open at 12:00 GMT, using 15:00 GMT (around London Close) as a second time-based profit objective, and taking profit for day trading within the daily range by 18:00 GMT.

Which tools or signals does the notes recommend for finding entries?

It recommends looking for SMT divergence when price trades into support or resistance, using the 5-bar swing high/low for conservative traders, applying the Judas Swing on the day after a daily pivot, and using a 10-period Williams %R to assess oversold conditions.

Sep 18, 2026

Upload by Aria