AMD Model – Accumulation, Manipulation & Distribution (EducatioNew Zealand Dollar / U.S. DollarFOREXCOM:NZDUSDARX_PriceTime This chart illustrates how price moves through the AMD cycle, a common framework used to understand market behaviour. 🔍 What is AMD? AMD stands for: Accumulation (A) Manipulation (M) Distribution (D) It represents how price transitions from consolidation into expansion. ⚙️ Phase Breakdown: 1. Accumulation (A) Price moves in a range where: Buyers and sellers are in balance Liquidity builds above highs and below lows No clear directional bias yet This phase prepares the market for the next move. 2. Manipulation (M) Price temporarily breaks out of the range: Sweeps liquidity (highs or lows) Traps traders entering too early Creates a false sense of direction This is often where emotional decisions happen. 3. Distribution (D) After manipulation, price moves with strength: Strong displacement candles Clear directional intent Continuation away from the range This is typically where the “real move” occurs. 🔁 What the Chart Shows: You can observe multiple AMD cycles: Range formation (Accumulation) Liquidity sweep (Manipulation) Strong directional move (Distribution) This repetition highlights how the market operates in structured phases rather than randomness. 🎯 Educational Insight: Instead of reacting to price: Identify the range (Accumulation) Be aware of false breakouts (Manipulation) Wait for confirmation in Distribution This approach helps improve patience and timing.