Essentials to Trading the Daily Bias

Key Points

Focus on teaching essentials required to trade the daily bias using the dollar index on a daily chart.
This presentation does not guarantee daily predictions for daily bias; practice is necessary.
Concepts apply broadly across different currency pairs.

Daily Chart: Used to ascertain if the day will likely close up or down.
Intermediate and Short-term Highs and Lows: Key turning points used for support and resistance analysis.
Support and Resistance Theory: Core concept when market is range-bound or not in a parabolic move.
Classic Support/Resistance Levels: Identified by looking at the obvious swing points and turnings.
Market Scenarios: Analyzed whether trending or range-bound.

Short-term Swing Highs/Lows on Daily Chart: Identify points where price may reverse.
Example: Breaking above an old high signals potential to reverse and trade lower, or vice versa for old lows.

Outside Day: When the market violates both the previous day’s high and low. Can signal reversal or continuation.
Larry Williams concept – outside down close in a bullish market sets a bullish reversal potential.

Analyze the dollar index for direction, then translate for Forex pairs (e.g., EUR/USD as a mirror image).

Bullish Dollar Index: Reach for previous day’s high while focusing on intermediate highs on the chart.
Bearish Euro/USD: Similar analysis but focusing on previous day’s lows.
Consistent use of daily highs/lows to determine bias and potential targets.

Use these strategies in a demo account to build expertise.
Applying the concepts to your trading plans can help identify daily biases effectively.
There are vast opportunities to build upon these concepts with more advanced understandings.
For further learning, visit innercircletrader.com.

The notes provide a foundation to understand and apply daily bias trading strategies effectively using charts and key points consistently.
Ongoing practice and further study are necessary to increase proficiency.