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    ICT Daily Bias Explained - Inner Circle Trading

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    ICT Daily Bias Explained - Inner Circle Trading

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    2K views8 pages

    ICT Daily Bias Explained - Inner Circle Trading

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    nivinpolmkd

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    © All Rights Reserved
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    ict-concepts blog

    ICT Daily Bias Explained


    One of the cornerstones of Inner Circle
    Trader’s 2022 mentorship model is the
    concept of ICT daily bias. This blog post will
    provide insights into understanding daily

    bias, guiding you in identifying key factors


    essential for establishing a robust daily bias
    in your trading strategy.

    Understanding the ICT Daily Bias in


    Trading

    The concept of daily bias revolves around


    the identification of sell-side and buy-side
    liquidity, fair value gaps, order blocks,
    volume imbalances, and recent highs and
    lows.

    These elements collectively represent draws


    on liquidity, guiding market movement from
    one liquidity pocket to another.
    The approach involves analyzing these
    aspects on both weekly and daily
    timeframes, recognizing that price behavior
    and respect for these elements may vary
    with the timeframe.

    Fractality of Price Movement

    Price movement in trading is fractal,


    meaning that patterns and behaviors
    observed on higher timeframes like weekly
    often mirror those on lower timeframes like
    daily. However, lower timeframes may
    exhibit more noise and are prone to greater
    price disrespect of identified trends and
    patterns.

    Utilizing Weekly Bias for Daily Analysis

    Understanding the weekly market trend is


    essential for establishing a clear daily bias. If
    the weekly trend is bullish, for instance, the
    focus on a daily timeframe would involve
    identifying opportunities to go long and
    targeting specific highs for potential trades.

    Step-by-Step Approach For


    Developing ICT Daily Bias.
    Step 1

    To establish a daily bias, begin by analyzing


    the D1 timeframe on the chart. According to
    Michle Hudleston, Institutional traders and
    banks utilize the daily chart to execute their
    orders effectively.
    As shown in the chart above, start by
    marking the recent swing high and swing
    low using the trend line tool. This marking
    should be done at the beginning of the
    week, aiming to anticipate the direction of
    price movement rather than pinpointing the
    precise value it will reach.

    Step 2

    The second step involves identifying the


    drawn-on liquidity. Determine whether the
    recent algorithm activity leans towards sell-
    side or buy-side liquidity on the daily
    timeframe. If the price has recently swept
    the sell-side liquidity, there is a strong
    likelihood that the next drawn-on liquidity
    will be buy-side, and vice versa. In the chart
    below, you can observe that the price has
    recently interacted with sell-side liquidity,
    and the next anticipated drawn-on liquidity
    is on the buy-side.

    Learn to trade with liquidity

    Step 3

    For the third step in establishing the ICT


    daily bias, examine whether the price is

    within a premium or discount zone. If the


    price resides in the premium zone, your bias

    should lean towards a short position.


    Conversely, if the price is in the discount

    zone or below 50%, your bias should favor a


    long position.
    Step 4

    Are there any fair value gaps or order blocks


    that substantiate your analysis?

    ICT forex essentials to trading the


    daily bias

    The following concepts are the funding of


    Daily Bias
    Liquidity

    Premium and Discount Zones

    Fair Value Gaps

    Order Blocks

    Breaker Block

    ICT Daily bias is a fundamental concept


    that can significantly enhance your trading

    success. By comprehending the market’s


    daily direction, traders can strategically

    position themselves for profitable trades.


    Incorporating daily bias analysis in your

    trading approach can prove to be a game-


    changer.

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