How to build the daily bias

What bias is

Bias is the preferred direction you expect from price during the day. It is not a certain forecast: it is the filter that tells you to look only for buys, only for sells, or to stay out.

A five-step procedure

• 1. Structure on the Daily and H4: bullish trend, bearish trend or range?
• 2. Is price in premium or discount relative to the last major range?
• 3. Which liquidity levels are close (yesterday's high and low, the week's high and low)?
• 4. Which areas of interest lie above and below (higher-timeframe order blocks and FVGs)?
• 5. Are there important announcements today? If so, when?

How to turn it into a rule

Example: Daily bullish, price in discount relative to the weekly range, yesterday's high as liquidity above. Bullish bias: you look for buys after a sweep of the Asian low. If one of the conditions is missing, the bias becomes neutral and you don't trade.

Typical mistake

Changing the bias mid-day after one contrary candle. If the conditions you wrote haven't changed, the bias stays. If the structure on the timeframe you chose changes, you redefine it, but you write it in your journal.

Exercise

• Every evening write tomorrow's bias and the conditions behind it
• The following evening check: right, wrong or neutral. After 30 days you have a statistic on your bias