The EASIEST ICT Daily Bias Strategy You'll Ever Find

Casper SMC
29 Jan 202410:13

Summary

TLDRIn this video, the creator simplifies the process of identifying daily market bias for ICT traders, explaining how to determine high-probability trades by understanding the dynamics of internal and external range liquidity. The video introduces the concepts of fair value gaps, swing points, and time-based liquidity as key factors in identifying market direction. It emphasizes the importance of combining these elements with lower time frame structure and time-based liquidity to increase trading consistency and avoid false signals. By following this strategy, traders can make informed decisions, enhancing their chances of successful trades and minimizing stop-outs.

Takeaways

  • 😀 Understand the difference between **internal range liquidity** (fair value gaps) and **external range liquidity** (highs/lows).
  • 😀 The market is always doing one of two things: seeking external range liquidity or rebalancing internal range liquidity.
  • 😀 To determine daily bias, begin with a **top-down approach** starting from higher timeframes (e.g., weekly) to identify liquidity levels.
  • 😀 External range liquidity refers to recent highs or lows, while internal range liquidity refers to fair value gaps within the market's current range.
  • 😀 When the market trades into a fair value gap (internal liquidity), it is likely to seek external liquidity (e.g., swing highs/lows) next.
  • 😀 Similarly, when the market trades into external liquidity (swing points), it may reverse back to internal liquidity (fair value gaps).
  • 😀 Use **time-based liquidity** such as previous day's or week's highs and lows to confirm market direction and bias.
  • 😀 Look for **displacement** when the market moves through time-based liquidity levels to identify potential trend continuation or reversal.
  • 😀 When the market fails to displace beyond significant liquidity levels, such as previous highs or lows, this can signal a **reversal** in market direction.
  • 😀 For a **bullish bias**, focus on price action below lows, and for a **bearish bias**, focus on price action above highs to make entry decisions.
  • 😀 **Market structure shifts** on lower timeframes help confirm the overall bias, especially when combined with higher timeframe liquidity analysis and time-based confirmations.

Q & A

  • What is the primary focus of the strategy explained in the video?

    -The primary focus of the strategy is to help traders determine their daily market bias using a combination of liquidity concepts (internal range liquidity, external range liquidity) and time-based liquidity, while also considering lower time frame market structure for confirmation.

  • What is the difference between internal and external range liquidity?

    -Internal range liquidity refers to fair value gaps, while external range liquidity refers to swing points such as recent highs and lows in the market. Internal liquidity represents areas where the market may seek to rebalance, whereas external liquidity represents areas where the market is likely to aim for before potentially reversing.

  • How does the market typically behave in terms of liquidity?

    -The market is either seeking external liquidity (highs or lows) or rebalancing internal liquidity (fair value gaps). These are the two main actions the market takes, and identifying which one is occurring helps traders set their daily bias.

  • Why is a top-down analysis important when determining daily bias?

    -A top-down analysis helps traders understand the broader market context by starting with higher time frames (e.g., weekly charts) and gradually moving to lower time frames (e.g., daily or hourly charts). This allows for a clearer picture of the market's overall direction and enhances trade accuracy.

  • What role does time-based liquidity play in the strategy?

    -Time-based liquidity, such as previous day's or week's high/low, helps confirm the market’s direction. If the market displaces through these levels with force, it suggests a strong trend, whereas failure to displace can signal a potential reversal.

  • How does a trader confirm their bias using lower time frame structure?

    -Traders confirm their bias by observing lower time frame market structures. For example, a bullish bias may be confirmed by a market structure shift to higher highs on lower time frames, while a bearish bias is confirmed by lower lows. These shifts validate the expected direction of the market.

  • What is the significance of watching how price reacts to opening prices?

    -Watching how price reacts to opening prices can provide clues to market sentiment. When price dips under opening prices and forms wicks, it indicates potential for reversals or continued movement in the direction of the bias, particularly when the market is already showing signs of displacement.

  • What does it mean when the market fails to displace through previous lows or highs?

    -When the market fails to displace through previous lows or highs, it suggests a potential reversal. This failure to break through significant levels can indicate a shift in market sentiment, where the market may begin moving in the opposite direction.

  • How does the concept of liquidity help with identifying high-probability trading setups?

    -Liquidity helps identify high-probability setups by indicating where the market is likely to head. If multiple factors align—such as internal and external liquidity, time-based liquidity, and lower time frame structure shifts—this creates a high-confidence setup for a trade.

  • Why is it important to watch for structure shifts after the market enters a fair value gap?

    -Watching for structure shifts after the market enters a fair value gap is important because it confirms whether the market will continue towards external liquidity (e.g., previous highs/lows) or reverse. Structure shifts indicate a change in market dynamics and help validate the trading bias.

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Связанные теги
Daily BiasLiquidity StrategyMarket StructureTrade SetupFair Value GapTime-Based LiquidityICT TradingForex TradingMarket AnalysisHigh ProbabilityTechnical Trading
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