Best Daily Bias Concept (simplified) - Ep 36

Summary

The speaker emphasizes the importance of daily bias in trading, asserting that understanding price direction increases trading ease. They advocate for the use of fair value gaps as a key tool for identifying daily bias, arguing that these gaps provide crucial signs of price movement intentions. The script offers practical examples and strategies for using fair value gaps to predict and capitalize on market trends. The speaker also introduces the 'money making team' and invites viewers to sign up for insights and data on profitable trading, promising a potential mindset shift for those interested in improving their trading success.

Takeaways

• 🤑 Daily bias is crucial in trading as it helps predict the likely direction of the price the next day, making trading easier and potentially more profitable.
• 🚀 Entry models are not as important as having a daily bias; traders can use various edge models to enter the market as long as it aligns with the daily bias.
• 🔍 Fair value gaps are essential tools for determining daily bias, as they indicate the intentions of price movement and can guide traders to profitable trades.
• 💡 Trading without a daily bias is possible, but it is less effective; those with a daily bias are likely to make more money than those without one.
• 📊 The strength of a fair value gap can be determined by how many times the price enters it and whether it leads to a continuation of the trend or a retracement.
• 🔄 Respect and disrespect of fair value gaps are key concepts; a respected gap is one where the price wicks but does not close inside the gap, while a disrespected gap is closed inside or fully below/above it.
• 🕰 Timeframe context is important when using fair value gaps; daily gaps should be considered in the context of weekly gaps, and vice versa.
• 🎯 High probability trades occur when there is a lag with a fair value gap in it, indicating a strong potential for price movement in that direction.
• 📉 Disregard for a fair value gap can signal a weak bias, as seen when the price does not follow through with the expected movement after entering a gap.
• 📈 Traders should aim to identify and trade during high probability price action, sacrificing one day's trade to understand the bias for the rest of the period.
• 🌐 The speaker offers a mindset shift and an opportunity to sign up for a newsletter to receive personal trading data, insights, and potentially improve trading success.

Q & A

What is the main focus of the video script?

The main focus of the video script is to explain the concept of 'daily bias' in trading and how to use 'fair value gaps' to determine the direction of price movement consistently.

What does the speaker claim to be the most important aspect of trading?

The speaker claims that 'daily bias' is the most important aspect of trading because it can predict the likely direction of price movement for the next day.

What is the significance of 'fair value gaps' according to the speaker?

According to the speaker, 'fair value gaps' are significant because they are signs left behind by price movement, indicating its future intentions and helping to determine the daily bias.

Why does the speaker emphasize that the entry model is irrelevant?

The speaker emphasizes that the entry model is irrelevant because the key is to get into the market with the daily bias, and traders can use any edge model they prefer as long as it aligns with the daily bias.

How does the speaker suggest using 'fair value gaps' to determine daily bias?

The speaker suggests studying the 'fair value gaps' to understand the price's intention to move higher or lower, and using these gaps as indicators to take trades based on the expected direction of price movement.

What is the difference between a strong and weak 'fair value gap' according to the video?

A strong 'fair value gap' is one that only requires a single retracement to push the price significantly in the intended direction, whereas a weak 'fair value gap' is one that does not push the price effectively and may require multiple retracements.

What is the role of the 'weekly time frame' in the context of 'daily bias'?

The 'weekly time frame' provides context to the 'daily bias'. It helps traders understand the bigger picture and the strength of the 'fair value gaps', influencing the probability of the price movement.

How does the speaker define 'respect' and 'disrespect' in the context of 'fair value gaps'?

In the context of 'fair value gaps', 'respect' means that the price action wicks the gap without closing inside it, indicating the gap's strength. 'Disrespect' occurs when the price closes inside the gap or fully retraces to it, showing weakness.

What is the importance of understanding the 'daily bias' in trading according to the script?

Understanding the 'daily bias' is important in trading as it helps traders to filter high-probability trades from low-probability ones, leading to more informed and profitable trading decisions.

How does the speaker suggest traders can improve their trading strategy using 'fair value gaps'?

The speaker suggests that traders can improve their strategy by using 'fair value gaps' on different time frames, waiting for the right moment to enter trades, and managing risk by setting take-profit levels and going break-even.

What is the 'money making team' mentioned in the script?

The 'money making team' is the speaker's mentorship team, which is presumably a group of traders that apply the concepts discussed in the script to make profits in the market.

What is the mindset shift the speaker wants to give to the viewers?

The mindset shift the speaker wants to give is to understand the importance of 'fair value gaps' and 'daily bias' in trading, and to realize that these concepts can lead to significant profitability, even outperforming hedge funds.

Why does the speaker mention signing up for the email list?

The speaker mentions signing up for the email list to provide viewers with his personal trading data, insights, and a potential mindset shift, aiming to help them become more successful in trading.