Ultimate Guide to ICT DAILY BIAS (Only video you need)

Summary

This video dives deep into mastering ICT daily bias in trading, emphasizing the importance of predicting market direction for profitable execution. It breaks down the concept into two key questions: 'Where are we?' (market structure) and 'Where will we go next?' (target liquidity). By analyzing market shifts and liquidity points, traders can refine their bias for the day. The video stresses the importance of being selective, focusing on clear market bias, and not fearing occasional losses. With practical examples across various markets like NASDAQ, Bitcoin, and gold, it aims to simplify daily bias for improved trading success.

Takeaways

• 😀 Daily bias is crucial for successful trading as it helps determine the right direction of the market for the day.
• 😀 Profitable trading is about having the right direction and the right execution, not just the right direction.
• 😀 Traders need to focus on predicting market direction for the day, not for the next month or longer.
• 😀 Asking the right questions is essential in trading; the quality of your questions impacts the quality of your answers.
• 😀 To find the daily bias, ask two key questions: 'Where are we?' (current market structure) and 'Where will we go next?' (liquidity target).
• 😀 Market structure helps determine the bias: if the structure is bullish or bearish, the bias will follow that trend until a shift occurs.
• 😀 Target the nearest liquidity when determining the next move in the market, whether it’s a high or low.
• 😀 A clear daily bias makes trading easier and more profitable, while unclear bias should result in avoiding trades.
• 😀 Even if wrong about a daily bias, focus on minimizing losses and executing well when the bias is correct. Aim for a 70% win rate.
• 😀 Selectivity is key to consistent profitability—only trade when the daily bias is clear, and accept that you won’t always be right.

Q & A

What is daily bias, and why is it crucial in trading?

Daily bias refers to determining the overall direction of the market on a particular day, such as whether it is bullish, bearish, or neutral. It is crucial because having the right direction in trading significantly increases the probability of success, as profitable trading requires both correct market direction and proper execution.

What is the most important concept for profitable trading?

Profitable trading is about having the right direction (daily bias) and executing based on that direction. Mastering the market's daily bias gives a trader a high probability of being profitable in the long term.

How does daily bias help in market prediction?

Daily bias helps by predicting the movement of the market on a given day. If you believe the market will go up, you avoid short trades, and if you believe it will go down, you avoid long trades. Knowing your daily bias allows you to focus on the correct trades for that day.

Why is asking the right questions important in trading?

Asking the right questions is crucial because it leads to correct market predictions. For example, asking whether the market will move 3-4% up or down over a long period isn’t helpful for day trading. The right questions, like where the market is and where it will go next, lead to better decisions and outcomes.

What is the two-step process to find the daily bias?

The two-step process to determine daily bias involves asking two key questions: 'Where are we?' (which refers to the current market structure) and 'Where will we go next?' (which is about identifying the nearest liquidity or target area based on the current structure).

How do you identify market structure when determining daily bias?

Market structure can be identified by observing the most recent price movements and candle patterns. For example, a bearish market shift is indicated when there is a significant bearish close after a market sweep of highs, suggesting a bearish bias for the next day.

What role does liquidity play in determining daily bias?

Liquidity refers to price levels where the market is likely to move towards, either to collect stops or target unfilled orders. Understanding the closest liquidity points helps in determining where the market might go next, thereby informing the daily bias.

What is the importance of being selective when executing based on daily bias?

Being selective about when you execute based on daily bias is key to achieving a high win rate. Trading only when the daily bias is clear helps reduce the chances of executing on incorrect biases, leading to more consistent profitability.

What is the suggested win rate for daily bias and how can it be achieved?

A good win rate for daily bias is around 70%. This can be achieved by focusing on days when the daily bias is most clear and avoiding trading on days when the bias is uncertain or ambiguous. Even if you’re wrong occasionally, the key is to limit the frequency of those wrong trades.

What should a trader do if the daily bias is not obvious?

If the daily bias is not clear, it is recommended to refrain from trading as it may not present a high probability scenario. Trading on unclear days can lead to unnecessary risks and less favorable outcomes.