Mechanical Daily Bias
The lesson is built in five parts: the explanation, the daily charts, the 4H profile alignment, putting both together, and examples. We start with the daily chart, then bring in the 4H.
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Mechanical Daily Bias
The slides from the video, with an explanation under each one. Watch the video, then keep the PDF.
Quick terms. Gap / FVG = fair value gap, the same thing. DOL = draw on liquidity, where price is heading next. PDH / PDL = previous day's high and low. C2 / C3 = the reversal and continuation candles in the profile. Educational content only, not financial advice.
Creating a Daily Bias
A daily bias comes from two things lining up. On the daily chart you look at the daily key levels, the daily candle closure, and the draw on liquidity (DOL), which is where price is heading next. Then the 4H has to be aligned: you read the 4H profile and confirm it agrees with the daily.
Daily Key Levels
The key levels on the daily are gaps, old highs and lows, and the previous day's high and low (PDH and PDL). In the example, the daily candle closes after reversing from the PDH or PDL. When that happens, expect continuation on the next candle.
Old High / Low
One way a daily key level shows up is price taking an old high or low and reversing from it. In the example, price takes the old low, then reverses. After that, expect continuation until the next DOL is met.
Daily Gap
The other key level is a daily gap. Price trades into the gap and forms a swing formation with a reversal. Just like the old high or low, expect continuation until the DOL is met.
4 Hour Profiles
Once the daily gives you a direction, you align a 4H profile with it to confirm the bias. When the daily is a continuation candle (C3), the 4H profile can support it in two ways: a reversal (C2) with SMT, or a continuation (C3) from a key level.
4 Hour Profile
This is the daily continuation with a 4H reversal. On the daily, the candle keeps pushing in the direction of the trend. On the 4H, price forms a reversal that lines up with that daily move, which is what lets you take the daily bias.
Daily Reversal
To trade a daily reversal, you need a 4H SMT. In the example, the daily candle is the one being traded. On the 4H, price takes the PDL in a 2-stage move and reverses, which gives you the 4H SMT confirmation for the daily reversal.
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