ICT Daily Bias - The Only Video You Will Ever Need!

Summary

This video delves into the concept of daily bias and drawing liquidity in trading, utilizing the previous day's high and low as key indicators. It showcases how these levels can signal potential reversals or continuation of trends, with practical chart examples. The presenter also introduces the 'next day model' and the significance of swing points and failure to displace in framing trading narratives. The video concludes with London and New York session trade examples, illustrating the application of discussed concepts for actionable trading strategies.

Takeaways

• 📈 The video discusses the concept of daily bias and drawing on liquidity in trading, focusing on using the previous day's high and low as reference points.
• 📊 The presenter thanks 'n9xm trader' for teaching many of the concepts and introduces the 'next day model' as a tool for understanding market movements.
• 🔄 In an upward trend, the expectation is for the price to reach the previous day's high, while in a downward trend, the price is expected to reach the previous day's low.
• 🎯 Previous day's high and low can act as liquidity pools, indicating potential reversal points in the market.
• 📉 The script explains how to use previous day's highs and lows to frame an easy drawn liquidity bias or an area for a reversal in the market.
• 📝 Examples are provided to illustrate how to apply the concepts of previous day's highs and lows to frame bias or draw liquidity on charts.
• 🌐 The video also touches on using the previous week's high and low to frame reversals and draw liquidity, extending the analysis to a larger time frame.
• 📌 Swing points and the concept of 'failure to displace' are introduced as additional tools for framing drawn liquidity and potential reversals.
• 🔢 The 'next day model' is explained, suggesting that if the price fails to displace below a low, the expectation for the next day is for the price to move higher.
• 🗓️ The script includes practical examples on charts, demonstrating how to apply the discussed concepts in real market scenarios.
• 🏆 The importance of understanding price action, such as respecting support and resistance levels, is highlighted as crucial for identifying potential trading opportunities.

Q & A

What is the main concept discussed in the video?

The main concept discussed in the video is framing daily bias and drawing liquidity using previous day's high and low in trading.

Who is credited for teaching the concepts presented in the video?

The video credits 'n9xm trader' for teaching many of the concepts as well as his next day model.

How does the speaker suggest framing a draw on liquidity or daily bias?

The speaker suggests framing a draw on liquidity or daily bias by using the previous day's high and low as reference points.

What does the speaker mean by 'price is more likely to take previous day high or previous day low'?

It means the speaker is predicting the price movement direction based on whether it is more likely to reach the previous day's highest or lowest point, considering the current trend.

How can previous day's high and low be used to frame a reversal?

Previous day's high and low can be used to frame a reversal when the price reaches these levels but fails to break above or below them, leading to a change in direction.

What is the significance of reaching but not displacing above a previous day high in the context of the video?

Reaching but not displacing above a previous day high signifies a potential reversal point where the price is expected to reverse direction and move lower.

What does the speaker mean by 'failure to displace' in relation to swing points?

The 'failure to displace' in relation to swing points means that the price fails to move beyond a certain swing high or low, indicating a potential change in bias.

How is the next day model used in the context of the video?

The next day model is used to anticipate the price movement on the following trading day based on the failure to displace over old highs or lows, expecting an open low high close or open high low close candle.

What is the purpose of using previous week's high and low in the video?

The purpose of using previous week's high and low is to frame potential reversal points or areas of liquidity draw in the market for the upcoming week.

How does the speaker apply the concepts of previous day highs and lows to the charts in the video?

The speaker applies the concepts by observing price reactions around the previous day's highs and lows, using them to identify potential bias, draw on liquidity, and reversal points.

What is the importance of observing the closure of a candle in relation to previous day's high or low?

The closure of a candle in relation to previous day's high or low is important as it can indicate whether the price has confirmed a breakout or a reversal, influencing the trader's bias.

Outlines

00:00

📈 Understanding Daily Bias and Liquidity Drawing

The video introduces the concept of daily bias and liquidity drawing, focusing on the use of the previous day's high and low as a framework for anticipating market movements. It explains how to interpret the price's behavior in relation to these levels to predict either a continuation of the trend or a reversal. The speaker credits 'n9xm trader' for teaching these concepts and uses examples to illustrate how to apply this knowledge to trading strategies.

05:02

📊 Applying Previous Day's Highs and Lows for Trading Bias

This section delves into using the previous day's highs and lows to establish a trading bias. It demonstrates how to identify potential reversal points and liquidity pools by observing the price's interaction with these levels. The video provides a step-by-step analysis of chart examples, showing how to anticipate the price's next move based on whether it respects or breaches these levels, and how to adjust the bias accordingly.

10:03

📉 Utilizing Weekly Highs and Lows for Trading Strategies

The script discusses the application of weekly high and low levels to frame potential reversals and liquidity draws. It shows how these levels can influence the price action in the subsequent week, using chart examples to illustrate the price's reaction around these critical support and resistance areas. The video emphasizes the importance of observing the price's behavior at these levels to make informed trading decisions.

15:05

🔄 Exploring Swing Points and the Next Day Model

This part of the script explores the use of swing points and the concept of failure to displace as tools for framing liquidity draws and anticipating reversals. It introduces the 'next day model' which uses old highs and lows to predict the direction of the price movement the following day. The video provides practical examples of how to apply these concepts to trading, including how to identify entry points and set targets based on the price's interaction with these levels.

🕒 Trading Bias from Daily to Intraday Time Frames

The final paragraph of the script discusses the process of identifying trading bias from daily down to intraday time frames, specifically focusing on London and New York trading sessions. It provides examples of how to use the established bias to find entry points in lower time frames, such as the hourly or five-minute charts. The video concludes with a demonstration of how to apply the concepts learned to actual trading scenarios, emphasizing the importance of observing price action and market structure to frame a narrative for potential trades.

Keywords

💡Daily Bias

Daily bias refers to the expected direction of the market's price movement within a single trading day. In the video, the concept of daily bias is central to understanding market trends and making trading decisions. For example, the script mentions framing a daily bias using the previous day's high and low, indicating if the price is likely to reach a new high or low, which helps in predicting the market's direction.

💡Liquidity

Liquidity in the context of trading refers to the ease with which assets can be bought or sold in the market without affecting their price. The script discusses 'drawing on liquidity' as a method to anticipate price movements based on historical price levels, such as previous day's highs and lows, which act as areas of potential consolidation or reversal.

💡Previous Day High/Low

The terms 'previous day high' and 'previous day low' are used to describe the highest and lowest prices reached by a security or market in the prior trading session. The script uses these terms to illustrate how traders can use these levels to identify potential support and resistance levels for the current trading day, which is crucial for framing daily bias and liquidity.

💡Reversal

A reversal in trading signifies a change in the direction of the market trend. The video script explains how reaching a previous day's high or low can act as a potential reversal point if the price cannot break above or below these levels, indicating a potential change in market sentiment and a shift in the trading bias.

💡Trend

Trend refers to the general direction in which prices are moving. The script discusses how understanding the prevailing trend, whether upwards or downwards, helps in anticipating the price's next move towards the previous day's high or low, which is essential for setting trading strategies.

💡Swing Points

Swing points are significant price levels that the market has previously reached, which can act as potential support or resistance. The script mentions using swing points to frame drawn liquidity and anticipate reversals, emphasizing their importance in identifying key areas where the market may react.

💡Displacement

Displacement in the context of the script refers to the market's inability to move beyond a certain price level, such as a previous day's high or low. The script explains how a failure to displace can indicate a potential change in bias, suggesting that the market may move in the opposite direction.

💡Next Day Model

The Next Day Model is a trading strategy mentioned in the script that uses price action from the current day to predict the direction of the market on the following day. The model is applied when the market respects certain price levels, such as a PD (previous day) array, to anticipate bullish or bearish candles.

💡Fair Value Gap

A fair value gap is a price gap that occurs due to a change in market conditions or news events, which is considered to be a 'fair' or justified move. The script discusses how traders can use fair value gaps as entry points for trades, expecting a continuation of the trend or a reversal.

💡London/ New York Session Trades

The script refers to trading sessions that are specific to the opening hours of the financial markets in London and New York. These sessions are important for traders as they can influence market liquidity and volatility. The video provides examples of how to apply the discussed concepts during these sessions for potential trading opportunities.

Highlights

Introduction to daily bias and draw on liquidity concepts.

Use of previous day's high and low to frame daily bias.

Expectation of price reaching previous day high in an upward trend.

Utilizing previous day's high and low as liquidity pools for potential reversals.

Example of a reversal framed off a previous day high.

Explanation of how to use previous day highs and lows for framing bias or draw on liquidity.

Chart examples demonstrating the application of previous day high and low concepts.

Discussion on using previous week's high and low to frame reversals and draw on liquidity.

Importance of observing price reactions around weekly high and low marks.

Swing points and failure to displace as indicators for framing bias.

Introduction to the next day model using PD arrays, old highs, and old lows.

Chart analysis applying swing points and next day model for trading decisions.

Example of a London session trade using previous day and swing points.

New York session trade example using hourly and five-minute charts for entries.

Using fair value gaps and aggressive moves for trade entries.

Strategies for setting stops and targets based on 2R rule and previous significant price levels.

Conclusion summarizing the importance of using previous day's and week's highs and lows for framing daily bias.

Transcripts

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[Music]

how's it going everyone this video is

going to be over daily bias and draw on

liquidity we'll go through the PDF and

then a bunch of examples and before we

get into it I'd like to give a big thank

you to the n9xm trader for teaching in

many of these Concepts as well as his

next day model

the easiest way to frame a draw on

liquidity or have daily bias is using

previous day high and low so for example

up here unless price is going to

consolidate and not take out the low or

the high of the previous day we are

going to have it either take previous a

high previous day low or both of these

so the way I look at it is price more

likely to take previous day high or

previous state low in this case I would

expect price to be reaching for a

previous day high as we are trending

upwards so that would be my draw on

liquidity similarly over here we are

trending down so I'd expect price to

reach for previous day low previous day

high and low can also be used as

liquidity pools to frame a reversal so

for example here we reach into this

previous day high we can't displace

above it and price reverses similarly

over here we reach below this previous

day low canvas place and we come back in

the range so for example here just using

previous day highs and lows we have our

previous day high

a reversal is framed off a previous day

high from here since we close back in

I'm expecting price to reach for

previous day low as shown here we reach

for this previous day low the next day A

reversal is framed off of this previous

day low as it cannot displace below now

from here I'd expect the next day to

reach for this previous day high and

continue to reach for previous day high

until a drawn liquidity is met so let's

hop into the charts and look at a few

examples of this so in this example

we're just going to take a look at using

previous day highs and lows to frame

bias or a drawing liquidity so for

example here

we have our previous day high and we

closed above it so I would like to see

price move higher and easy draw would be

this previous day hi

letting price move forward we close over

it again so another easy drawn liquidity

would be this previous High

right here we take our previous high but

we can't close over it we fall back in

So now I'd want to see

if previous day low gets taken in my

drawn liquidity or my bias would be

short

so now we reach and close below and now

I want to see do we close or reach below

previous state low

right there we reach below previous day

low and close so now I want to see do we

reach below previous day low again

reach below previous day low and close

so I want to see if we take previous day

below again

right here you can see we take previous

day low don't close outside the range so

now I would want to see a move higher or

a reach per previous day high

close outside the range so bullish or

reach for this previous day high

right there we actually Gap above it

come back in the range so this would be

bearish for me so I'd want to see if we

reach for this previous day low

right here we do but we can't close

outside this range so now I'd want to

see previous day high

or be bullish

right here you can see we actually took

the low and the high and so what I look

for here is we swept this low couldn't

close below it and we actually take

previous day high and close outside of

it so from here I would be looking for

previous day high

and then we get a very large candle up

expecting some sort of consolidation but

if we don't stay inside I'd want to see

previous day high

right here you can see we took previous

day high so now I'd want to look towards

previous day low

close below there so where would I want

to see previous day high or be bullish

and there we go close out so then once

again can look for previous day high

goes over that

you can look for previous day high

and you guys get the point by now now it

won't be like this every day but I hope

you can see how just using previous day

highs and lows I can frame an easy drawn

liquidity bias or an area for a reversal

so let's get back to the PDF and look at

some other examples another thing I look

for is the previous week's high and low

so for example here we have a weekly

range and I will Mark out the high and

the low and this can be used to frame a

reversal such as so

and then ideally looking for the other

side of the weekly range or can also be

used to frame a drawn liquidity for

example here we return to a premium

reach an order block and then the

previous week's low is the draw on

liquidity so let's hop into the charts

and look at a few examples so in this

example we're going to go through the

daily chart looking at previous week's

highs and lows and how price reacts

around them so right here we have our

previous week's low and previous week's

High marked out and extended into the

next week

so as we continue forward here what

happens we don't reach for previous

week's high or low and we end up being

range bound so marking out this next

week it is a short week so there's only

four candles but let's see how price

reacts around those areas you can see

right here we take previous week's low

so let's see what the next candle does

there is a fair value Gap over here

and then we come back into the rain

where would I expect price to go from

here I would expect it to reach for

previous week's High

and there we go we hit previous week's

high on a Friday so here we have the

next week marked out let's see if

anything happens

so you can see right here on Monday we

reach into previous week's high and

close below that makes me think I want

to see the previous day low

you can see we reached over previous

week's high again we also take the low

so here I'm a little undecided but we

still are closing below previous week's

low which leads me to a downside bias

and there we go we start to make a move

down they'll go into the next week and

moving the lines over you can see that

Monday we swept previous week's low and

formed a nice bullish reversal candle

this leads me to believe that we're

heading for previous week's High

so letting this play out

we retest that previous week's low

and there we go over previous week's

High

and we get our expansion to the upside

you can see using previous week's high

and low I can not only frame a reversal

but can also use it as a draw on

liquidity

in this next section I'm going to be

talking about swing points failure to

displace as well as the next day model

if you don't know what swing points are

please check out my liquidity video it

will be linked in the top right corner

so using swing points I can frame a

drawn liquidity off of that for example

here price is trending up where is it

likely to go we have an old high resting

over here I can also use that to frame a

reversal so for example here using this

liquidity pool resting above here as a

point for a reversal that leads me into

the failure to displace or the lack of

displacement over swing points so for

example here if we have a swing low and

price fails to displace under it my bias

can then be up

similarly up here when price fails to

displace over a high my bias can be down

this then leads me into the next day

model

so with the next day model using PD

arrays or old highs or old lows and when

price fails to displace below a low my

next day I can expect price to move

higher so right here I would anticipate

a open low high close candle or a

bullish candle and you can see how that

would work out and then similarly up

here when price takes this swing High

closes back in the range I can

anticipate an open high low close or a

bearish candle so looking at a set of

price action using that you can see we

sweep this high right here close back in

the range I can anticipate this next

candle being open high low close

similarly over here we respect this PD

array here next day I would want to see

open high low close this candle stays

inside I can use that bias and continue

to use it until we reach our draw and

liquidity which in this case is sell

side liquidity resting at the swing low

below

so let's get into some charts and look

at a few more examples for this next

example we are just going to be walking

through dxy on the daily chart and using

what we have just learned and applying

it so if you notice right here we do

have a pair value Gap restroom below

here and price is drawing towards it so

let's see what happens if you notice

right here what do we get let's just

take a look at our previous date low we

cannot displace below previous day low

which leads me to believe that we should

reach for previous day high

marking out previous day high let's see

what happens

we reach up can we close out so I want

to see price reach

once again higher

what happens here we reach up build this

fair value Gap but even more simple we

can't close outside our previous day's

range which leads me to believe that we

should be reaching lower or in this case

sell side liquidity resting right above

a fair value Gap

right here we reach lower we have not

reached our drawn liquidity so I'd want

another candle down

here we get a candle down into our drawn

liquidity or that fair value Gap if you

notice we can't close outside the range

and we close back in so I can see us

reaching for our previous day high or in

this case if we look at a swing point we

want to be reaching for this high

here we get a closure outside that high

and so what should we expect price to

move higher or consolidate with a large

range

from here close back in the range would

want another day down so would want to

see below this previous day low and if

you've already seen this example this

order block resting right here

here's where the next day model could be

applied as we are respecting a PD array

so reaching into this PD array closing

outside next day model would say look

for an open low high close or a bullish

candle where would that bullish candle

want to be reaching for well we could

look for previous day high or we could

look for swing points in the market

so looking at our next day we get a

reach we have not hit our drawn

liquidity so we would want to see the

next day do what reach for that draw on

liquidity

we get a closure outside of that so I

want to see price reach for another

daily High

here you can see price takes this High

closes back in so I'd want to see price

reach for this previous day low we are

in an uptrend here so I wouldn't want to

see it shift too much or we are likely

to go lower

here you can see

we may have swept that can't tell on

this time frame but from here I don't

really have a lot of bias so what I can

do is Mark out

R high and our low and C which one gets

taken

so inside bar just having an uptrend I

think it's more likely to reach for this

high

here we get a closure outside that high

now what can we use we can use this

swing point in the market

here you can see we reach above this

swing High can't close outside of it and

close back in

from here we can look for previous day

low or a swing point in the market which

we already have marked out

here we get this placement down

very aggressive so we already took this

low so we can look for either previous

day low or a swing point in the market

we haven't yet reached this low still

closing out so either previous state low

or this swing point

still closing outside this is when I

would need to look left what do we have

we have a bunch of lows resting under

here or swing points

foreign

and then we get a large move through

that but you can see how you can use

just swing points previous day highs and

lows and displacement and closures over

or below structure to frame a narrative

not every day but a lot of the days of

the week so let's go through a few

examples of going through bias all the

way down to an entry time frame this

first example is going to be a London

session trade and then for our next

examples we'll do some New York session

trades so for example here we're either

consolidating in this little range here

so we could use this range high and low

or we can just use previous day high and

low

so let's see what happens no real bias

going into this next day

so you can see we fail to close over

this previous day high here so what can

I expect we're already in a bearish

trend I'd want to see price reach where

lower so I can either look for previous

day low

or I can look for a swing point in the

market right here

so let's drop down to the hourly time

frame and see what happens so here we

are on the hourly time frame I'm going

to go ahead and Mark out midnight

opening price

and let's see what happens

so right here we notice what happens is

we get a stop hunt right into a fair

value Gap so I can go down and look to a

lower time frame if you notice the time

this is occurring is London so I would

want to see a high of the day put in in

London

here you can see the sweep on the hourly

and the aggressive displacement off

so I can either look for an entry here

or see what happens after this price

action

because this isn't a very big sweep so

I'd be a little concerned that it wanted

to go up again

so looking at this fair value Gap here

let's see what happens

there we get an aggressive move down off

of that and we have a fair value Gap

right here

so the way I can frame and trade here is

look to enter the fair value Gap My Stop

on that high and then I can either look

for a fix to r or looking towards that

previous day low we talked about

furthermore we could also go down to

that swing point so we'll just leave it

right here and extend it if it gets

there

so we let this play out

we get an aggressive move down towards

our previous day low

now let's see what happens if we reach

for That Swing point

and there we go price reaches For That

Swing point and ends up continuing a lot

lower

for this next example you can see right

here we have a previous day low

gets swept closed back over where would

we be looking either this high or

previous day high so marking out the

swing Point here see what the next day

does

next day sweeps this High comes back

into the range from here using the next

day model I can expect price to go where

lower

so with that idea in mind I'm going to

drop down to the hourly chart here

marking out midnight price let's see

what happens as we near New York session

right here we're starting to get into

the New York Hill Zone what do we have

up here we have an hourly fair value Gap

so I'm marking that out we have our

point of Interest we can go to a lower

time frame in this case the five minute

and what do we have right here we have a

five minute fare value Gap

so looking to enter here

I would have my stop right here on this

high and then I can either look for 2R

or we can zoom back out and find a

Target there so going back out to the

hourly let's see what we have we have

some nice lows resting over here one of

those lows right around 2R

or we can look for these lows down here

going back to the five minute chart if

we're going to go reach for that lower

one so we're over 2R there

2.55 R let's see how it works out

so

get a move up some consolidation and

there we go we hit rtt so that is an

example of a New York session trade and

a London session trade using the next

day model thank you to mmxm Trader for

showing us that if you haven't seen my

video on that I'll also link that in the

top right I hope this video was helpful

and showed you how I find my daily bias

if you did find it helpful please hit

that like button the Subscribe button

and leave a comment below if you have a

great rest of your day and I'll see you

guys later

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