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Market Bias and Liquidity Analysis

Jul 11, 2025

Summary

  • The meeting was a comprehensive walkthrough of the speaker's process for determining daily trading bias, with step-by-step explanations using recent market examples.
  • Three key "daily profiles" for market sessions were discussed to help predict likely price movement.
  • The importance of identifying high time frame "draws on liquidity" and sessional highs/lows was emphasized, with practical annotation techniques shown live.
  • The speaker offered access to further coaching and support for traders seeking more personalized guidance.

Action Items

Overview: Determining Daily Trading Bias

  • The speaker outlined issues faced by traders who lack daily market bias and aims to resolve this by sharing a structured approach for bias determination.
  • The method is centered on analyzing the previous session's price action and identifying "draws on liquidity" (key highs/lows on 1-hour, 4-hour, and sessional timeframes).
  • The strategy applies across indices (e.g., S&P 500, NASDAQ) and forex/commodities regardless of the session being traded.
  • Session opening times are critical, as volume and volatility typically increase, creating better trading opportunities.

Three Core Daily Profiles for Sessions

  • The daily bias model categorizes market conditions into three sessional profiles:
    1. Previous session consolidation → New session manipulation/reversal.
    2. Previous session manipulation → New session reversal.
    3. Previous session manipulation/reversal → New session continuation.
  • "Manipulation" refers to market moves that seek out liquidity (e.g., breaking highs/lows) to trigger large orders.
  • The speaker stresses that one of these profiles plays out nearly every day and in every session, guiding a trader's expectation for price movement.

Identifying Draws on Liquidity

  • Traders should mark out recent 1-hour, 4-hour, and session-specific highs and lows as potential liquidity targets.
  • The method: observe whether these liquidity areas have been swept or remain intact to guide predictions for the current session.
  • When a session manipulates and reverses at a liquidity area, the next session often targets liquidity in the opposite direction.

Live Market Application and Chart Examples

  • The process was demonstrated live using recent S&P 500/NASDAQ charts:
    • For each session, annotate Asian, London, and New York session highs/lows.
    • Classify the previous session's behavior into one of the three core profiles.
    • Use identified liquidity areas and session patterns to form the bias and anticipate price targets.
  • Even on high-impact news days, the model can be applied, though the speaker notes increased caution due to price volatility.

Tactical Note: Continuation Profiles & Lower Timeframes

  • When expecting a continuation move (profile 3), traders should look for manipulation at lower timeframes (5-minute, 15-minute lows/highs) before entering trades, as new session liquidity needs to be collected.
  • High time frame manipulation provides the overall bias, but session open manipulation at lower timeframes is necessary for entry precision.

Decisions

  • Daily bias method standardized into three sessional profiles — rationale: Every price movement can be classified into these core patterns, simplifying analysis and trade planning.
  • Emphasis on sessional liquidity highs/lows as key reference points — rationale: These consistently act as magnets for price and are critical for the described strategy.

Open Questions / Follow-Ups

  • No open questions were noted, but the speaker invited further queries through their coaching program.