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.