How to Find Your Daily Bias Correctly

Summary

In this video, the presenter teaches viewers how to effectively select buyers in trading. Emphasizing the importance of understanding price movement, order flow, and market structure, the video covers the process of analyzing different timeframes, identifying trends, and using liquidity levels. The presenter shares practical examples, explaining how to spot bearish and bullish markets, and how to make informed trading decisions by observing price actions and key market signals. The video concludes with a reminder to stay consistent, manage risk, and avoid overcomplicating trades.

Takeaways

• 😀 Focus on identifying the 'buyers' in the market, which refers to your anticipation of price direction for a specific time period (daily, weekly, monthly).
• 😀 A well-curated watchlist with no more than 3-4 assets is essential for clear focus and efficient trading decisions.
• 😀 Start by analyzing the daily time frame to understand the overall market trend before diving into lower time frames.
• 😀 Pay attention to recent price actions such as consecutive candle closures, which can indicate the prevailing market direction (e.g., bullish or bearish).
• 😀 The 4-hour time frame helps in understanding shorter-term trends and retracements within a larger trend, providing better trade setups.
• 😀 Intraday traders should focus on the 15-minute and 5-minute time frames for precise entry points once the broader trend is established.
• 😀 Market structure shifts (lower highs and lower lows for bearish trends) are crucial for confirming the direction of the market.
• 😀 Be aware of liquidity levels and institutional reference points like order blocks, break blocks, and fair value gaps to better time your entries.
• 😀 In uncertain or range-bound markets, it is important to remove those assets from your watchlist to avoid taking unnecessary risks.
• 😀 Consistency is key—staying disciplined with your strategy and risk management will increase your chances of sustained profitability.
• 😀 Focus on accurate risk management by placing stop-losses appropriately and ensuring you're trading within your financial capacity to avoid large losses.

Q & A

What is the definition of 'Buyas' in trading?

'Buyas' refers to the anticipation of price direction for a specific time period (day, week, or month). It represents the trader's expectation of whether the market will move bullish or bearish, based on price action and market analysis.

How can you determine if the market is bullish or bearish?

To determine if the market is bullish or bearish, observe the most recent price action. A series of higher highs and higher lows indicates a bullish market, while lower lows and lower highs indicate a bearish market.

What role does the daily time frame play in determining market bias?

The daily time frame helps determine the overall market direction by observing the most recent price action. It allows traders to identify trends and potential biases for the day, week, or month, serving as the foundation for lower time frame analysis.

What is 'order flow' and how is it important in selecting buyers?

Order flow refers to the direction in which money is flowing in the market. It's important for identifying where liquidity is being driven, which helps traders understand the potential for price movement in a specific direction, either bullish or bearish.

What is the significance of liquidity levels in trading?

Liquidity levels represent areas where significant buying or selling has occurred. Identifying these levels can help traders predict where price might reverse or continue, as liquidity often leads to price reactions.

How do you use the 4-hour time frame to refine your market analysis?

The 4-hour time frame provides a more detailed view of price action compared to the daily chart. It helps refine the overall market bias and assists in identifying key levels, such as breakouts, retracements, or structure shifts.

What are 'fair value gaps' and how do they influence trade decisions?

Fair value gaps (FVG) are areas where price has moved too quickly, creating an imbalance in the market. These gaps are often targeted for price corrections, where traders may look for entries once price retraces to fill the gap.

What is the difference between a 'bullish mitigation block' and a 'breakout block'?

A bullish mitigation block occurs when price retraces into an area of support, showing a failure swing before moving up. A breakout block, on the other hand, involves a move through a significant liquidity level or resistance point, typically leading to a continuation of the trend.

Why is it important to focus on a limited number of assets in your watchlist?

Focusing on a limited number of assets (no more than three) allows traders to maintain clarity in their analysis, avoid overwhelm, and dedicate more time to monitoring potential trade opportunities, improving decision-making.

How can you manage risk when trading with smaller time frames, like the 15-minute or 5-minute charts?

When trading on smaller time frames, managing risk involves using tight stop losses based on market structure shifts and ensuring the risk-to-reward ratio is favorable. It’s crucial to stay disciplined and not chase the market impulsively.