Determining the daily bias in trading is not about establishing a preconceived bias before the market commences trading, as this approach can often prove to be inaccurate. Instead, it relies on experience and adherence to specific rules. For example, being bullish doesn't mean buying every day, and being bearish doesn't mean selling every day. Traders should wait for specific conditions to meet their expectations, such as discount arrays for bullish trades and premium arrays tor bearish trades, during specific times of the day.
Furthermore, the economic calendar can be effectively employed alongside the daily chart to foresee potential manipulation linked to high-impact news catalysts. Ultimately, determining the daily bias demands the amalgamation of diverse insights acquired through mentorship and hands-on experience. One of the key factors in determining daily and intraday bias is the previous day's high and low. These levels act as reference points that help traders gauge the strength of the current trend and anticipate potential price movements.
To recognize bias, we must identify what order flow is currently being respected. In bullish markets, we expect discount arrays to support price, while in bearish markets we see resistance from premium arrays. Recognizing a change in the state of delivery of price will be important when timing reversals.
To recognize bias, we must identify what order flow is currently being respected. In bullish markets, we expect discount arrays to support price, while in bearish markets we see resistance from premium arrays. Recognizing a change in the state of delivery of price will be important when timing reversals.
It is vital to keep in mind that the daily bias is not a fixed concept. The market's bias can change over the course of the day due to factors like news events, economic data, or geopolitical influences. Traders must remain flexible and modify their strategies accordingly.
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