ICT Daily Bias - The Only Video You Will Ever Need!
Summary
TLDRThis 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
- ๐ 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.
- ๐ The presenter thanks 'n9xm trader' for teaching many of the concepts and introduces the 'next day model' as a tool for understanding market movements.
- ๐ 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.
- ๐ฏ Previous day's high and low can act as liquidity pools, indicating potential reversal points in the market.
- ๐ 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.
- ๐ 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.
- ๐ 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.
- ๐ Swing points and the concept of 'failure to displace' are introduced as additional tools for framing drawn liquidity and potential reversals.
- ๐ข 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.
- ๐๏ธ The script includes practical examples on charts, demonstrating how to apply the discussed concepts in real market scenarios.
- ๐ 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
๐ 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.
๐ 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.
๐ 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.
๐ 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.
๐ 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.
Mindmap
Keywords
๐กDaily Bias
๐กLiquidity
๐กPrevious Day High/Low
๐กReversal
๐กTrend
๐กSwing Points
๐กDisplacement
๐กNext Day Model
๐กFair Value Gap
๐กLondon/ New York Session Trades
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
foreign
[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
foreign
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