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What Is ICT Daily Bias?
Best ICT Daily Dias Strategy
Dear Traders
ICT Daily Bias refers to the anticipated direction of price movement for a trading day, crucial for traders employing the Inner Circle Trading (ICT) methodology. This concept aids traders in aligning their strategies with institutional market flow by predicting whether the market is likely to trend upwards (bullish) or downwards (bearish) based on a thorough analysis of higher timeframes, order flow, liquidity levels, and market imbalances.
Key Components of ICT Daily Bias
Higher Timeframe Analysis: Traders begin by analyzing daily charts to determine the overall market structure. A bullish bias is indicated by higher highs and higher lows, while a bearish bias is characterized by lower highs and lower lows.
Order Flow and Market Structure: Understanding the daily order flow is essential. Institutional traders primarily utilize daily charts to execute significant trades. Recognizing the prevailing order flow helps in identifying whether to expect upward or downward price movements.
Liquidity Levels: Price movements are often driven by the need to seek liquidity or rebalance imbalances in the market. Traders look for areas where liquidity is likely to be drawn, such as previous highs or lows.
Identifying ICT Daily Bias
To accurately identify the ICT Daily Bias, traders should follow these steps:
Daily Charts: Look for recent market structure shifts on the daily chart to determine if a bullish or bearish bias is forming.
Imbalances: Identify any existing imbalances that may need rebalancing, as price tends to move towards these areas.
Draw on Liquidity: Recognize potential liquidity draws that could influence price movement throughout the day.
Trading Strategies Based on Daily Bias
Once the daily bias is established, traders can refine their strategies using lower timeframes (such as 15-minute or 30-minute charts) to execute trades:
For Bullish Bias:
- Identify key Points of Interest (POIs) such as Order Blocks or Fair Value Gaps.
- Wait for price action to confirm a Market Structure Shift (MSS) before executing buy trades, targeting areas of liquidity above.
For Bearish Bias:
- Similarly, identify POIs in premium zones and wait for confirmation of a bearish MSS before executing sell trades, aiming for liquidity below.
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Conclusion
The ICT Daily Bias serves as a foundational element in trading strategies, enabling traders to align their actions with institutional flows and improve their chances of success in the markets. By diligently analyzing higher timeframes and understanding market dynamics, traders can make informed decisions that reflect the anticipated daily price movements.
Happy Trading!!!
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