Gatie's Execution Morning Strategy (GEMS)

Power of 3
Predicting Market Moves

Every Market Move is a Power of 3

 Gatie's Execution Morning Strategy (GEMS)

Introduction

What To Expect
GEMS is the strategy I use every single day to determine bias and execute trades. The premise of
this strategy is power of 3 - how the market moves. In this book you will learn intricacies of power
of 3, including basics to advanced theory on how the market moves and where it will move to as
well as how to execute on it. Understand that it is IMPOSSIBLE for me to capture everything I know
on power of 3 and market moves in one single book, however I can guarantee you this book will
teach you things you have never learned before and of all the sources on Po3, this will be the start
of the best.

About Me
Many of you know me as an improving trader looking to find his way. I have been trading for over a
year, and gotten some payouts as well as some nice trades in a live stock account. I have thousands
of hours on the charts, thousands of backtested trades and have studied ICT lectures more than
anyone I have ever met. Most of you will know me for my ability to predict the market moves. I have
a lot of improving to do and I do not claim to be an amazing trader or very profitable or anything
like that. I do claim to know ICT better than most people, and I do claim to be very precise and
accurate in predicting price moves. My track record in predicting market moves is for the public as
I live stream everyday calling out moves beforehand time and time again and have been doing so for
months. However, like most traders I have many weaknesses and I am not here to brag or convince
you of anything,being the best trader I can be will always be my goal. Imany improvements that
need to be made and together we will make those improvements with GEMS and the enigma in Po3.

Table of Contents

Chapter 1 - Characteristics I Want to Follow as a Trader

Chapter 2 - Liquidity Resistance Factor [LRF]

Chapter 3 - Understanding the ESSENTIALS in Power of 3

Chapter 4 - Advanced Theory on Po3

Chapter 5 - Executing the Po3 and Trading Models

Chapter 6 - The Trading Plan

Chapter 7 - Money Management

Chapter 8 - Journal Template and Improvement

 Gatie's Execution Morning Strategy (GEMS)

GEMS Chapter 1 - Characteristics I Want to Follow as a Trader

Trader Mentality and Traits

These characteristics are crucial for executing GEMS efficiently and consistently. These are the
characteristics that have prevented me in the past from performing well and I have adapted and
learned to focus on these 5 character traits to improve my trading and execution of GEMS.

Characteristics of a Successful Trader Using GEMS

Passionate
Passion is key to consistency and longevity in trading. One of my strongest characteristics as a trader is
my passion for trading, falling in love with learning, improving and trading will be much easier. “The
man who enjoys the journey will walk further than the man who enjoys the destination.”
​
Disciplined
Without discipline you can never be consistent as a trader. Discipline is the ability to stick to the system
and the rules, always thinking in the mindset of 100 trades and not just the current trading day. Your
system and your money management will do the heavy lifting.

Patient
A lack of patience was one of my largest weaknesses as a trader, forcing trades and not being patient in
the setup. The reality is most of the time, the best thing you can do in trading is wait.

Fearless
Do not be afraid of missing a move, there is nothing wrong with sitting out on a move and learning. Do
not fear losing money, remember in 100 trades you will be net profitable, the losses are inevitable. Do not
fear clicking buy or sell, focus on the candlesticks, not the money. Finally, do not fear holding a trade, if
the trade comes back and you lose or break even, it does not matter, all you can control in trading is
following your rules. The market will do what it will do, follow your rules and you will be profitable.

Confident
Have confidence in the system, in the rules, in the time and the money management. Without confidence,
you will be emotional in trading when it is against you or when you lose. Staying confident while on a
loss streak is difficult and you may miss setups because of fear. Do not be scared, trust your system, you
did the hard work, all you have to do now is execute according to your system.

The Key to Success

Remember the only thing you can control in trading is whether or not you follow all your rules. Pre
determine all your rules for your system, follow them and that is the BEST you can do. At the end of
the day, you can not control what the market does, so there is no point in being upset or hurt based
on the outcome of a trading day, week or month. You continue to do your best, follow your rules
and what happens will happen. Focus on your system and constantly improve. Losing your best
opportunity to improve, do not let it be more than a lesson.
 Gatie's Execution Morning Strategy (GEMS)

GEMS Chapter 2 - Liquidity Resistance Factor [LRF]

Definition
The Liquidity Resistance Factor [LRF] is a numeric value that can be calculated to help determine
whether the NYAM Session will have low or high resistance liquidity and whether or not you should
trade the session. Determining a LRLR or HRLR session is a very key component to my trading
system, as trading with the same rules in high resistance conditions will result in a very low win
rate. Thus the 1st step in GEMS is to determine the LRF and determine if we can anticipate HRLR.

Determining The Liquidity Resistance Factor

Various market events and conditions are graded on a scale of 1 - 10 to determine whether or not
we can anticipate and therefore prepare for a low or high resistance liquidity session. I use the
point system below. Note there are more conditions that I consider, this section is primarily for you
guys who are not aware of the impact of the economic calender to get a sense of the effect they
have, majority of the time I am not actually calculating the LRF and just use my knowledge to know
if I should trade or not and if it will be LRLR or HRLR or not.

LRF Point Grading

Economic Calendar
A.​ Day Before NFP = 10pts
B.​ Day of FOMC = 10pts
C.​ Session of Powell Speaking = 10pts
D.​ Day of Powell Speaking = 5pts
E.​ Contract Expiration = 3pts
F.​ No News Day = 2pts
G.​ Day Before CPI / FOMC/ / Powell= 1pts
H.​ Large economic events = ???
I.​ Holidays = ???

Market Conditions
J.​ London Expansion = 2pts
K.​ Asia Expansion = 2pts
L.​ Opening Range Gap Less Than 30 Handles = 2 pts
M.​ Previous Day Large Expansion = 2pts

LRF Result
Sum up the total value of points and achieve a numeric value and identify one of the 3 options. Note in reality any
of these conditions can cause a potential LRLR.
​
LRF Selection Criteria
1.​ LRF 10 or Greater = avoid trading
2.​ LRF 5 or Greater = anticipation of HRLR
3.​ LRF 4 or Less = anticipation of LRLR
 Gatie's Execution Morning Strategy (GEMS)

GEMS Chapter 3 - Understanding the ESSENTIALS in Power of 3

Power of 3 Understanding
Understanding the power of 3 of a higher time frame candle can give bias for the week, for the day,
for the session and help frame trades. Power of 3 refers to accumulation, manipulation and
distribution of a candle. Understanding the intricacies to EACH of the 3 stages is crucial to
executing low resistance liquidity runs and having high probability trades. Utilizing the po3 I look
to avoid accumulation (time distortion) and identify manipulation legs to trade the distribution legs.
Power of three is the key to avoiding accumulation, identifying the manipulation and trading the
distribution. The power of 3 is the key to my bias and trading model. I have much to share on po3,
information you will not find anywhere else, so pay close attention.

What is Po3
Power of 3 is accumulation, manipulation and distribution or AMD. This refers to when a candle
opens at a specific time, for example the 9:30am open and we have accumulation around that price
level at that time. Then, you look for a manipulation from that opening price (a fake price run)
which forms the wick of the higher time frame candle and then frames the reversal. The reversal is
the start of the distribution of that candle, which forms the body and the opposing wick.

Basic Diagram of Po3 AMD

 Gatie's Execution Morning Strategy (GEMS)

GEMS Chapter 3 - Understanding the ESSENTIALS in Power of 3 (cont’d)

Bias and Po3

Power of three is ONE of the methods I use to determine bias, as stated before identifying when
there will be accumulation , manipulation and distribution can give you bias for the month, week,
day and session. You can use these 3 stages to identify high probability bias and trade ideas.

Stage 1 - Accumulation
With stage 1 of po3, you want to see price accumulate around the opening price of the candle. During
accumulation price is getting ready to expand off the orders it accumulated. This accumulation will
create the range to STDEV project the manipulation of the candle (will cover soon).. It is crucial to
identify when the candle is likely to move and stay range bound. Price will range when it is waiting on
the correct TIME to move. This is called Time Distortion and will be utilized later in this document.

Stage 2 - Manipulation
With stage 2 of po3 you want to see manipulation into a key level that can frame the reversal for stage
3. This will set the price leg to STDEV project the distribution of the candle. It is crucial to identify the
manipulation from the candle in order to trade the low resistance distribution. High probability
manipulations occur from the opening price of the candle and setup distribution for a key time.

Stage 3 - Distribution
With stage 3 of po3 you want to see distribution towards a key objective. This will help determine what
will happen in stage 4 and where we will close in the candle. Distribution is likely to occur at a key
time, the market can always accumulate before distributing, the key is to know when.

Monthly Po3
Accumulation, manipulation, distribution from the monthly open. 00:00 EST on the 1st day of the month.

Weekly Po3
Accumulation, manipulation, distribution from the weekly open. 00:00 EST on Monday.

Daily Po3
Accumulation, manipulation, distribution from the daily open. 00:00 EST on the given day.

AM Session Po3
Accumulation, manipulation, distribution from the session open. 09:30 EST on the given AM session.
​
PM Session Po3
Accumulation, manipulation, distribution from the session open. 13:30 EST on the given PM session.
 Gatie's Execution Morning Strategy (GEMS)

GEMS Chapter 3 - Understanding the ESSENTIALS in Power of 3 (cont’d)

Why I Am Focusing on Po3

With my “Gatie’s Execution Morning Strategy (GEMS) we are looking to capture the bulk of the
NYAM session move which is 9:30am EST to 11:30am EST. The candles we are primarily trading are
the RTH 1 hour candles (9:30 - 10:30 and 10:30 - 11:30) as they have the bulk of the movement for the
RTH 4 hour candle (9:30- 13:30). Note the move can expand up until 13:30. In order to capture the
bulk of these candles we need to identify the following:

Is there is going to be LRLR or HRLR in the morning session

This will help determine if we are going to have a clean distribution, or any significant movement at all.
Avoiding consolidation and time distortion is key to avoiding losses and having a better win rate.

Is there is going to a small or large range in the morning session

If there is going to be a large range morning session, you can predict and anticipate your draw on
liquidity and profit targeting better. If there is going to be a small range morning session or seek and
destroy, your stop loss and profit target needs to fit accordingly (we will go over this later in GEMS)

Is there a 9:30 Po3 in play

Scanning for a 9:30 Po3 will give the framework for any trade in the session. We will discuss the 9:30
judas swing and po3 model later on in the document.

Is there a 00:00 Po3 in play

Scanning for daily po3 will give precedent over the 9:30 judas swing. In certain conditions we have a 9:30
distribution and no significant manipulation from the 9:30 opening price, because the focus is to
distribute the positions that were placed overnight from 00:00. We will also cover this model on the next
page.

Importance of HTF Bias

The power of 3 of a monthly, weekly and daily candle will give the proper context and conditions for
a high probability power of 3. Understanding where these time frames are trading towards will set
up the best day trades only if you can identify the correct direction and the following below.

Importance of the Smart Money Narrative

The narrative of price or the “why” price will move, in the perspective of smart money is the key to
unlocking the Po3, without proper narrative, you will have trouble identifying what is the
manipulation leg and what is the distribution leg. In every trade you take, you must have a reason as
to “why” price should reverse or continue from here or “why” price should reach this level.

Importance of Time
As the correct narrative unlocks the Po3, time unlocks the trade. Remember price will only move at
the correct time, while timing the market can be very hard, the models in GEMS will discuss how to
time the Po3 and when to expect the distribution effectively and consistently. The key in this
section is to understand Po3 is the key to the market whilst narrative and time is the key to po3.
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GEMS Chapter 4 - Advanced Theory on Po3

Key Concepts of Po3

The following concepts are advanced theory concepts on power of 3 that I utilize in my trading. I
have thousands of trades including backtest and a lot of theory to discuss to master Po3 and price
movements. We will get into the trading models but understanding these concepts is crucial to high
probability Po3 so try to follow along.

STDEV with Po3 - Accumulation Manipulation Projection (AMP)

The market is algorithmic, identifying where price can manipulate to and reverse from is very
beneficial to finding a high probability reversal or continuation level. Finding your accumulation in
your Po3 is crucial as you can use projections in that price action and look for STDEV to align with a
key level to frame where price can manipulate to and reverse from. There are two methods to
potentially pick the market high or low and identify the end of the manipulation phase. These
methods are “Range Deviation” and “Reversal Deviation”. We will also discuss later how to predict
high probability protected highs and lows using this concept paired with other confluences.

AMP - Range Deviation

You will anchor your fibonacci tool to the highest high and the lowest low of the accumulation phase and look for a
range deviation between 0 and -1 STDEV. This is where you expect a small manipulation leg and then a move back
into the range. Range Deviation will be used most when using AMP for the 9:30am Po3. In this example we have a
pre-market range. Expecting a bearish 9:30 Po3, we can deviate the accumulation manipulation projection (AMP)
and see where we are likely to manipulate to (and reverse from) when paired with a HTF PDA. Using Range
Deviation you want to anchor your fibonacci to the range high and range low and look for a HTF PDA to align with
0 to -1 STDEV level as this is only a range deviation.
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GEMS Chapter 4 - Advanced Theory on Po3 (cont’d)

AMP - Reversal Deviation

You will anchor your fibonacci tool to the last price leg of the accumulation phase and look for a reversal deviation
by using distribution targets -2 to -3. This is where you expect price to distribute towards a key level and reverse
from, hence the reversal deviation and the distribution STDEV. Reversal Deviations can be used most effectively
for higher time frame Po3s such as the daily, weekly and monthly Po3 In this example we have accumulation
leading up to midnight opening (00:00am EST). Note the last price leg that gave the distribution towards our
reversal point -2 to -3 STDEV aligned with a HTF PDA. This is our AMP Reversal Deviation. Also note how the
daily Po3 reversal deviation framed the distribution from the day. This allows for the 09:30 to act as distribution
for the daily Po3 and not formulate another Po3. Remember the smart money narrative and time perspective.
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GEMS Chapter 4 - Advanced Theory on Po3 (cont’d)

STDEV With Po3 - Manipulation Distribution Projection (MDP)

Now that we can use AMP or accumulation manipulation projections to frame our reversal and end
point for manipulation which is tradeable, let's discuss trading the reversal. Ideally, you are trading
the reversal as the manipulation move can be difficult to find setups in and usually is not in my
trading window anyway. The next thing you need to learn is the manipulation distribution
projection, or projecting where the manipulation leg can distribute too.

Manipulation Distribution Projection (MDP)

You will anchor your fibonacci tool to the last price leg in the manipulation phase. This is where you
expect price to distribute positions towards a key level which will often align with -2 to -3 STDEV or in
expansive markets the -4 STDEV level, remember narrative and time first. Now note something very
important, if you are wrong about the manipulation leg and the distribution coming, you will likely see a
reversal of the STDEV level 0 to -1 STDEV, this is because your “MDP” or manipulation distribution
projection is actually a range deviation. Follow the examples below for a correct MDP. In this example you
have your smart money reversal confirmed and your high probability protected low (AMP Reversal
Deviation) for daily Po3. You can now project your last price leg in the manipulation phase and expect
distribution of positions fitting your context. Note the -4 STDEV level aligns with our HTF Level. Now
that you understand a correct MDP or manipulation distribution projection what would have happened if
you were wrong? Well price would have likely reversed from the 0 to -1 STDEV level as instead of
projecting a MDP you would be projecting a AMP Range Deviation. Always note how price reacts in the
first STDEV level from 0 to -1 STDEV. Now that you understand STDEV and Po3, we can discuss framing
trade ideas and other concepts that aid the probability of the Po3.
 Gatie's Execution Morning Strategy (GEMS)

GEMS Chapters 1 to 4 Review

Review
Before we continue, it is important you understand chapters 1 to 4 thus far as we are going to dive
into advanced theory on power of 3. There is no need to be overwhelmed, you can always go back
and learn more or ask questions. I know it is a lot to handle, but I strive for precision and
consistency and this is what it took me, so bare with me, I have a lot more insight to share.

Before continuing, understand the following:

1.​ Characteristics you need to be a successful trader
2.​ LRLR and HRLR and how to anticipate one vs the other
3.​ Basic understanding of Po3 and why it is essential
4.​ Importance of bias, narrative and time
5.​ Stages of Po3
6.​ AMP - Accumulation Manipulation Projections (range deviation)
7.​ AMP - Accumulation Manipulation Projections (reversal deviation)
8.​ MDP - Manipulation Distributions Projections

Going Forward
Once these concepts are understood, continue lower. We are going to cover the following:

Chapter 4 - Advanced Theory on Po3

Protected highs and lows
IPDA Stages of Price Delivery
Time distortion
Trade invalidations

​ Chapter 5 - Executing the Po3 and Trading Models

Trading models
Entry models
A+ models

​ Chapter 6 - Executing GEMS - The Trading Plan

​ ​ Chart setup
​ ​ Narrative and dol
​ ​ Trading models
​ ​ Entry models
​ ​
Chapter 7 - Money Management

Chapter 8 - Journaling
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GEMS Chapter 4 - Advanced Theory on Po3 (cont’d)

Protected Highs / Lows in the Po3

One of the best and most efficient ways to trade the po3 is identifying your high probability to
protect highs and lows from the po3 or in other words identifying your manipulation leg correctly.
Remember the key to this is narrative and time, as discussed in the previous pages. Now we will
discuss how to begin trading the Po3 after having the correct narrative and time and the first step
is your protected high or low. Most of the time your protected high/ low will also be an ITH / ITL.

Identifying Your Protected High or Low

Your protected high or low is the high or low that should not be taken in the power of 3,
hypothetically, if you can identify this low correctly you can have a 100% win rate, the difficult part
is identifying it correctly.

Example of Protected High or Low

In this example you can identify this
protected low, framing the Smart
Money Reversal for the 00:00 Po3.

How Can You Trust This Low?​

Distribution Projection (asian range)
PDL Taken
Relative EQH + HTf Objective Above

Market Timing
This low formed in pre-market and now
that is identified as the protected low,
we can move to 09:30 and we can
expect bullish Po3.

9:30 Po3 vs 00:00 Po3

When we have a 00:00 po3 in play and
a protected low formed before 09:30,
we can expect 09:30 manipulation or
Po3 to be less significant. Remember
the TIME is the key. Understanding
when we framed the reversal for the higher time frame Po3 will give context for what to expect at
09:30. In this instance, the smart money narrative is that we are positioned long off of PDL liquidity.
We can expect 09:30 Po3 to begin distribution. In simple terms a protected low before 09:30 =
09:30 distribution. No protected low before 09:30 means a protected low after 09:30 then
distribution. The economic calendar also plays a large role in this and understanding when the
market is likely to move. We will get into this more. Remember this is comparing daily po3 and
09:30 po3. This also applies for daily, weekly and monthly Po3 as it is fractal.
 Gatie's Execution Morning Strategy (GEMS)

GEMS Chapter 4 - Advanced Theory on Po3 (cont’d)

Timing the Distribution in Po3

This is where advanced theory takes a turn for more advanced theory. Now that you can
understand protected lows, the key now is to time the distribution. Timing the market and timing
the distribution is very key and there are some things that need to be understood here.

IPDA Stages of Price Delivery

Understand the 4 ways price can deliver and how each stage relates to one another.

​ Consolidation
Consolidation is where price moves inside a clear trading range and shows no willingness to move
significantly higher or lower. After consolidation is always EXPANSION.

Expansion
Expansion is when price moves quickly from a level of equilibrium. Expansion or displacement is
understanding the “willingness” for the market to move. After expansion is always RETRACEMENT or
CONSOLIDATION.

​ Retracement
Retracement is when price moves back inside the recently created price range. Typically retracement is to
a fair value gap,

Reversal
Reversal is when price moves the opposite direction that current direction has taken it.Typically you
are looking for liquidity pools for where price is reversing too.
 Gatie's Execution Morning Strategy (GEMS)

GEMS Chapter 4 - Advanced Theory on Po3 (cont’d)

Time Distortion
Time distortion is an essential component to trading the distribution in power of 3. You have
learned to identify protected highs or lows, you understand the stages of price delivery and what
can occur, now we will discuss time distortion and how to better time a price move. Time distortion
is when price is consolidating in a range, simply waiting to expand on the basis of time.

Definition
Time distortion is a price consolidation that is waiting for a Po3 distribution. This is very commonly
aligned with 2nd stage re-accumulation / re-distribution of a market maker model and gives a fake
price move against a higher time frame Po3 or MMXM. If you are confused, just wait, everything
will align soon.

Time Distortion and Protected Lows

Now that you know what a protected low is and what time distortion is. You understand the market
is distorting not to manipulate positions, it is simply waiting for the time to expand. In this specific
case you do not expect a manipulation leg and you expect an expansion. This is another way to
identify your protected highs and lows. Majority of the time you will think you are in “choppy”
conditions or “HRLR” but in reality your po3 distribution is simply waiting on to distribute and your
stop loss at the protected low is safe.
 Gatie's Execution Morning Strategy (GEMS)

GEMS Chapter 4 - Advanced Theory on Po3 (cont’d)

Po3 Trade Invalidations

Based on what you have learned about AMP range deviation, AMP, reversal deviation and MDP we
can begin to understand where trades can be invalidated.

Po3 STDEV Trade Invalidations

Before we get into the trading models we will discuss trade invalidations based on STDEV. If you are
still confused about the STDEV work so far, go back and learn the range deviation, reversal
deviation and manipulation distribution projection.

Fake Distribution
It is possible you have the incorrect narrative
and where you expect price to distribute, it can
actually reverse once you enter and stop you
out. One reason this happens is because you
think you are trading the distribution projection
but really you entered on a manipulation. Based
on what we learned, we can use range deviation
to predict where the manipulation will occur.
Therefore we should not be “resisting” off the
STDEV levels 0 to -1 STDEV. If we are there is a
CHANCE your trade was a manipulation move
and not a distribution move.

Notice in the example you enter a trade that is

actually a manipulation leg for distribution and
not a distribution leg, the rejection of STDEV
levels 0 to -1 can help act as a confluence for
this trading being incorrect. Another
confirmation is the formation of the opposing
breaker block, you should not be seeing an
opposing breaker form when you are in a trade.

Note: this is not the case every time, the key is

still ALWAYS narrative and time, as this will
take precedence over anything else in price.
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GEMS Chapter 4 - Advanced Theory on Po3 (cont’d)

Anticipating Timed Expansion

Now that we have discussed fake distributions, let's discuss the final step before the trading
models, which is timing market moving and distributions. Understanding when the market is going
to move is key to trading high probability distribution and utilizing the Po3 in LRLR.

Macros
A macro is a time window where you can ANTICIPATE the market will run for inefficiency or
imbalance. A lot of the time you will see either a manipulation leg or a distribution leg during a
macro (expansion). The macros we use in GEMS are as follows:

​ Macro Times
AM Session: 09:50 - 10:10 Macro and 10:50 - 11:10 Macro
PM Session: 1:50 -2:10 Macro and 2:50 -3:10 Macro

Po3 Real Distributions

Understanding which Po3 is in play for manipulation or distribution is an essential aspect to
unlocking distribution legs and avoiding consolidation trades.

​ Possible Po3s in AM Session

​ Monthly Po3
​ Weekly Po3
​ 00:00 Po3
​ 09:30 Po3
​ 10:00 Po3
​ 10:30 Po3
11:00 Po3
11:30 Po3

Accumulation into Expansion

Remember the phase of price delivery and the 2nd stage re-accumulation model of the MMXM.
After accumulation ALWAYS comes expansion. This also plays a role with protected low and time
distortion / consolidation.

1st Stage Accumulation / 2nd Stage Re - Accumulation

If this is confusing don't worry, we will cover the MMXM in the
context of Po3 as well. For now all you need to understand is
price will expand after consolidation.
 Gatie's Execution Morning Strategy (GEMS)

GEMS Chapter 5 - Executing the Po3 and Trading Models

The 09:30 Po3 Model

The 09:30 Po3 is the opening of the 4H candle on the RTH. The reason power of 3 is so strong is
because it occurs every single day. Some days it will be difficult to identify and that is okay. The key
is to spot the power of 3 and 9:30. This is also the 9:30 Judas Swing Model. You can project the
manipulation and project the distribution (using methods discussed in the previous page).

09:30 Po3 - Classic Model

This is the most simplistic form of how the 9:30 po3 model can present itself. It will not always be this simple.
However in this example the key takeaway is,

Framework
●​ Accumulation pre-market (before 9:30)
●​ Manipulation into key level ( from NYO)
●​ IFVG / FVG forming back into the range

Throughout these models we will build layers on the po3 to make it more and more effective and precise in its
delivery.
 Gatie's Execution Morning Strategy (GEMS)

GEMS Chapter 5 - Executing the Po3 and Trading Models (cont’d)

00:00 Po3 Model

The daily Po3 or the MNO / 00:00 Po3 refers to the accumulation, manipulation, and distribution
of the daily candle. The true day open of the candle is 00:00am EST and we refer to this as the
opening price. This Po3 can form ways.

​ London Reversal Po3

This is where London manipulates from 00:00 and frames the reversal after for the rest of
the day. We trade the continuation in the NY session.

​ NY Reversal Po3
This is where NY manipulates from 00:00 and frames the reversal after for the rest of the
day. We can trade the reversal or the continuation in the NY session.

​ Seek and Destroy Po3

This is where we have ranging conditions, price is being held in a range. We can trade the
range inside the NY Session if we have a large range (this can be difficult).

​
 Gatie's Execution Morning Strategy (GEMS)

GEMS Chapter 5 - Executing the Po3 and Trading Models (cont’d)

MMXM and Po3 (SMR - 1st Stage Accumulation - 2nd Stage Accumulation)
MMXM and Po3 is aligning a MMBM with a bullish Po3, this can form many different ways but the
focus is to understand the basic model for now.

MMBM Po3 Base Model

Using the opening price to identify a

high probability Po3 protected low and
buyside delivery + SMR in the MMBM
and as a real distribution for the Po3.

MMSM Po3 Base Model

Using the opening price to identify a

high probability Po3 protected high and
sellside delivery + SMR in the MMSM
and as a real distribution for the Po3.
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GEMS Chapter 5 - Executing the Po3 and Trading Models (cont’d)

Silver Bullet
The silver bullet is a model that can overlap with Po3 distribution as well and is always worth
looking for. The silver bullet we are focused on forms from 10:00am to 11:00am. The silver bullet is a
narrative, expecting distribution from 10:00am to 11:00am playing off the narrative of the London
session and the narrative from 9:30 - 10:00am that is established. Although this silver bullet setup
can form many ways, here is a base example we will be working off of. If 9:30 frames a reversal look
for a 10:00am continuation. If 9:30 does not frame a reversal, look for 10:00am reversal and
continuation. Remember, silver bullet is a narrative and trading a fair value gap in that narrative.
This works really well with the MMXM model as well utilizing the determined stages.
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GEMS Chapter 5 - Executing the Po3 and Trading Models (cont’d)

A+ Po3 Models
With every trading model there is always your A+ setup and for this book I will share the A+ setups
and how they form in the Po3. Understand that setups will vary and the key component is always
the smart money narrative and the time aspect that will unlock the Po3. This is just a sample base
of one way an A+ model will form.

09:30 Po3 - Classic Distribution Model

A+ Criteria
​ Accumulation pre-market NYO
​ AMP - range deviation 0 to -1 STDEV
​ Manipulation into key level
​ IFVG / BPR back into the range
​ 9:50 - 10:10 Macro Distribution
​ BRKR / MSS / CISD confirmation
​ MDP -2 to -2.5 into key level
​ Confluences

The Key
1.​ Smart money narrative
2.​ Bias
3.​ Draw on liquidity

Note
This will work best with NY Reversal Po3 and not
LO Reversal as London Reversal or Pre-market
manipulation usually means 9:30 distribution.
 Gatie's Execution Morning Strategy (GEMS)

GEMS Chapter 5 - Executing the Po3 and Trading Models (cont’d)

09:30 Po3 - Protraction Model

Very similar to the previous example where 9:30 frames an AMD, in this example we have a
retracement after the initial expansion, allowing for macro distribution and a more “confirmed”
entry model, before the htf pda is met. Once the HTF PDA is met, it is possible to have a potential
MMXM SMR / SB after 10:00am or continuation. The key - takeaway of this model is the
retracement leg before the distribution target is met. The protection is the key as the distribution is
delayed for the macro and the retracement offers an entry opportunity.

A+ Criteria
​ Accumulation pre-market NYO
​ AMP - range deviation 0 to -1 STDEV
​ Manipulation into key level
​ IFVG / BPR back into the range
​ Retracement leading up to 9:50 - 10:10 Macro into key level usually at -2 to -2.5 STDEV
​ IFVG
​ MDP to -4 STDEV distribution target
​ Confluences

The Key: htf objective was not met and smart money is accumulating more positions to distribute to the target
 Gatie's Execution Morning Strategy (GEMS)

GEMS Chapter 5 - Executing the Po3 and Trading Models (cont’d)

00:00 Po3 - Classic Daily AMD

This is where London or NY will frame
the reversal, in this example we will use
London reversal to frame our narrative
as most of the time a NY reversal you can
implement a 9:30 po3 amd.

A+ Criteria
​ Accumulation in asia
​ Range deviation 0 to -1 STDEV in LO
​ Manipulation into key level from MNO
​ CISD reversal confirmation
​ Protected high/low of day in LO
​ Retracement in NY into key level
​ Key distribution time macro / SB
​ BRKR / MSS / CISD confirmation
​ MDP -2 to -2.5 into key level
​ Confluences

Note
With daily po3 sometimes 9:30 can have a very
small retracement or no retracement at all.
These aggressive distributions at 9:30 can be
difficult to predict but what you need to
understand is, if the daily po3 is framed and
smart money is positioned, they want to use the
9:30 volatility injection to distribute their
positions not to accumulate more positions at
times. In order to identify which is occurring
you must master the smart money narrative
and distribution timing.

Gem: if you have a protected high form right

before 9:30 in daily po3, you can expect to
distribute to STDEV targets right at 9:30, (hard
to spot).
 Gatie's Execution Morning Strategy (GEMS)

GEMS Chapter 5 - Executing the Po3 and Trading Models (cont’d)

Classic Seek n Destroy Po3

With seek and destroy you are looking to keep precision to a peak. There is a lot of retracement
and quick moves. To navigate this market you need to use your protected highs and lows for your
SL and keep your TPs close. I try to close every position at 2R, and breakeven at -2,-2.5 STDEV level
to be cautious. For distributions your looking for your 30 minute intervals for potential po3
reversals / distributions, often we get each reversal leg in SnD for each hour candle open
ETH/RTH.
 Gatie's Execution Morning Strategy (GEMS)

GEMS Chapter 5 - Executing the Po3 and Trading Models (cont’d)

Intermediate Power of 3s
I call these intermediate powers of 3s because they are not daily or 4 hour power of 3s. In the daily
candle power of 3 you use MNO. In the H4 power of 3 you use the 9:30 opening price and 13:30
price (in regular trading hours). However in electronic trading hours your 4 hours candles are
10:00am and 2:00pm. Therefore you can come to this conclusion based on the hourly candles that
every 30 minutes you have a potential po3 distribution after an opening price. In order to identify
which will distribute you must understand the following.

This model can form in many ways but it is important to remember the following, know when the
distribution can come and where you are in the narrative and context.
​
Predicting Po3 Distributions based on Intermediate Power of 3s
●​ Smart money narrative (where smart money is positioned and distributing to)
●​ IPAD stages in price delivery (accumulation then expansion)
●​ Time distortion
●​ MMXM

Intermediate Power of 3s
●​ ETH 1 hour candles: 10:00am, 11:00am
●​ RTH 1 hour candles: 10:30am, 11:30am
​
 Gatie's Execution Morning Strategy (GEMS)

GEMS Chapter 6 - The Trading Plan

Chart Setup
Now that we have discussed base A+ models and the context of MMXM, it is time to get into the
trading plan and what to do to start finding these trade setups. The first thing you are going to do
in the morning, before 9:30am open, is mark out key levels to help frame a Po3. Levels I always
mark out are the current NDOG / NWOG , 00:00 opening price, asian range, london range and any
close proximity htf key levels that align with my narrative and dol (step 2).

Mark the following

●​ NDOG / NWOG / ORG / Close proximity key levels
●​ NYO / MNO
●​ Potential Po3 STDEV
​
Narrative and DOL
Determine a bias and a smart money narrative. Before looking for any trades, the first thing to do is
have a clear draw on liquidity and narrative as to why price should go there. This is typically done
on the monthly, weekly, daily and sometimes H4. If there is no clear dol for the daily chart you can
just stay on the M15. The 15 minute chart will be your most used chart besides entries, you will be
able to see all the key highs and lows as well as imbalances. Just don't forget the higher time frame
play. Always understand the htf Po3 and the htf MMXM, this will help give a smart money narrative.

Trading Models
Once you have the chart setup and your clear narrative and dol the next step of GEMS
Entry Models. Power of three gives the framework and the idea for each of the following models.

09:30 Power of 3
00:00 Power of 3
Intermediate Power of 3 Distribution / Reversals
MMXM
Silver Bullet

Entry Models
Entry models are all the ways of getting into the market and finding good RR based on the price action. Entry
models always come after the trading models and are only for execution and trade management. Understand
your Po3 and once the trading model is framed and distribution is expected, select the entry model.

​ Unicorn
​ FVG / IFVG
​ BRKR MIT
​ OTE PDCT
​ FVG Soup
​ CISD OTE
​ 1st Presentation
 Gatie's Execution Morning Strategy (GEMS)

GEMS Chapter 7 - Money Management

Money Management
Money management is what will do the heavy lifting for you because the truth is you will make
mistakes. The more you simplify the more you can miss, the more you complicate the more you can
over do and it is inevitable to mess up. Money management is what will carry you through your
mistakes. This is my money management system and what I recommend for PROP FIRM TRADING.
For live traders I would recommend a static %risk every single trade around 0.5-4% is good.

Risk Management Strategy and Rules

I look to risk the same amount every single trade. This is because I want to keep my wins bigger
than my losses. If I begin to fluctuate my positions and risk more or less on different trades, I open
the opportunity for mistakes and losing more and making less. I personally look to risk 0.3%
currently on funded accounts and 0.6% on evaluation accounts. However in my opinion anywhere
from 0.25 to 0.5% on funds can be acceptable and anywhere from 0.25 to 1% can be acceptable for
funded accounts. The goal here is to give yourself enough trades to allow the probabilities to play
out. Also keep in mind my rule is two ideas per day max. So risking 0.3% per trade allows me to lose
0.6% per day and still continue trading. I do not give specific rules for anyone, I always recommend
looking at your numbers and yourself to learn how much you are comfortable losing and making.
The key is to remember the following:

​ Risking Rules
1.​ Give yourself enough risk to allow a losing streak and let probabilities play out
2.​ Choose an amount risk that will not make you emotional in your trade or after your trade

Taking Profits
Every trade has a final objective where you will close the final position if it reaches there,
sometimes this can be your low hanging fruit objective or it can be multiple RRs. The way I manage
my trade is by following these rules.

​ Profit Taking Rules

1.​ Partial 66% or > at key level overlapping with 2 to -2.5 STDEV if 3RR or more is reached
2.​ Full close at key level overlapping with 2 to -2.5 STDEV if less than 3RR is reached (2R min.)

Reducing Risk
I reduce risk when it makes sense in my trade and can reduce it to a stop loss that is a protected
high or low in the sense of the po3 distribution. Remember, the stop loss is SAFE as long as your
narrative is correct, so understand if you are wrong it will stop you and if you are right it wont,
assuming you have placed it correctly. When reducing risk to manage SL at the following:

​ Stop Loss Management

​ ​ ITH / ITL , next stage delivery, protected high / low , -2 to -2.5 STDEV
 Gatie's Execution Morning Strategy (GEMS)

GEMS Chapter 8 - Journaling and Improvement

​
The Key to Success
Journaling is the truth to success and consistency, it is how I learn from endless mistakes and
continually improve. Something as simple as journaling a picture of your trade can give you so
much information about your trading. For example, you can learn how much drawdown your
winning trades are allowing, if there is little drawdown, you can maybe craft for a tighter SL and
better RR. IF there is a lot of drawdown, you can maybe craft for a better entry. This is one of the
infinite things journaling will do you for your trading in the long term. Without journaling, I would
have never gotten payouts or passed accounts and found the system that works for me.

Journal Template
A lot of you are lazy to journal and I understand that I was too. This FREE journal template for
GEMS / the po3 model. For those of you who wish to conceptualize your trading with the context
of Po3, which I recommend all of you do, this template will be beneficial for you.

https://tame-garlic-84a.notion.site/1441f4a637f180ed82cee810694b46db?v=1441f4a637f181d5aed200
0c5a8c752c&pvs=4

Power of 3 Predicting Market Moves

 Gatie's Execution Morning Strategy (GEMS)

Conclusion

Take-Away
The main takeaway for you guys reading this is that the Po3 is how the market moves.
Understanding the Po3 and which distribution we are in and when it is likely to take place
is the key to unlocking the market moves. Every single large body candle took place
because of a Po3, starting all the way from the monthly all the way down to the lower time
frames. There are basic concepts in understanding Po3 and advanced concepts in
understanding Po3 and I hope you guys learned something in both.

Understand I can not teach every single concept I know in this document, and I cannot
teach through live price action. I hope you guys learned something from this E-Book and
realized the power, in the power of 3 in unlocking market moves.

All The contents of this book were written by @GatieTrades

A majority of these teachings were created and published by @theinnercircletrader on

Youtube throughout various lectures and credit is due.

Social Media @ GatieTrades

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