Daily Bias - Directional Bias

Low Hanging Fruit - securing money vs. swinging for the fences

Mechnical method: 3-Step Process for FINDING bias:

1. Structure - king of all smart money - tells us WHERE price is going
a. Maps what liquidity to look for
b. If we are bullish and the market is moving up, then the expectation is the
market will continue moving up...but just because the market is bullish
that doesn’t mean we are just able to take longs. There will be
retracements down into a discount region into the leg that we just saw.
c. Premium/discount + structure to know bullish or bearish
d. Displacement - key to determining true direction.
When you see a short-term high, you want to see an energetic move up.
e. Displacement candles, displacement candles over structure -
big-aggressive closes above/below structure.
f. Buying at a discount of the displacement range aka the leg.
g. If no displacement through structure, expect reversal.
h. If displacement through structure, price is reaching towards liquidity.
i. Lack of displacement means no confirmation of structure and higher
probability of manipulation.
j. Big forces aka Smart Money cause massive moves.
2. Liquidity - helps with TARGET - tells us WHY price is going
a. Draw on Liquidity - price is magnetized towards liquidity
b. If structure is displacing towards something, it is moving towards an area
of liquidity.
c. Structure is always reaching for liquidity. Where is the liquidity?
-Where the Stop-Losses may be located
-Imbalances
3. Order Flow
a. What orderflow is being respected?
-Price retraces into liquidity zone or orderblock then continues higher =
bullish orderflow is being respect.
b. What is smart money doing?
-If you see liquidity be taken out then going into opposite direction, you
can see their true narrative.
Conclusion:
a. Daily Bias = bull or bear
- don’t make it more complicated than just determining whether you are looking
for more longs or shorts.
b. Trade with or against the bias, but be aware of it.
c. Structure + Displacement + Liquidity Target