Daily Bias Finally Explained

Most traders add years to their journey by jumping from strategy to strategy, when in fact trading is much simpler.

Daily bias is the foundation of every good trade—and if you get it wrong, everything else falls apart.

Why?

Because liquidity is the lifeblood of the markets. Banks, hedge funds, and other institutions don’t trade like retail traders—they target liquidity. They look for obvious highs and lows (stop-loss orders) and push price toward them before making their moves.

In fact, mastering liquidity is the key to aligning with smart money and staying on the right side of the market.

But daily bias is more than just liquidity. Let me share my simple 3-step process that will save you countless losing trades.

And remember, for the daily bias we use the daily chart and the 4H chart only for simplicity.

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The 3-Step Process for Daily Bias

Step 1: Liquidity (Most Important)

• Start by identifying the most obvious highs and lows on the 4H and daily charts.

• Ask yourself: Where is price most likely heading? Where are the stop-loss orders gathered?

• Liquidity gives you the big picture—it tells you where the market is moving to next.

Step 2: Fair Value Gaps (FVGs)

• Look at the FVGs on your chart: Which ones are being respected?

  • If only bullish FVGs are respected, your bias is bullish.

  • If only bearish FVGs are respected, your bias is bearish.

  • If both or neither are respected, the market is consolidating—don’t trade it. This alone will save you so much money.

Step 3: Order Blocks (OBs)

• Similar to FVGs, check which order blocks are being respected:

  • Bullish OBs respected? Go long.

  • Bearish OBs respected? Go short.

  • Both/neither? Consolidation—stay out.

Why This Process Works

This works because we are using the timeframes that the banks actually use - not the 5 min chart. That’s for our entries.

Now respect of a FVG means price wicks into the FVG and then quickly moves in the opposite direction with strength.

We also want to see this with order blocks, look for strong price reactions (a quick and aggressive move) after wicking into an OB.

If both the FVG and OB are respecting the same side of the market and you have an obvious liquidity target, then that is the highest probability trades you can get.

You see, by following this hierarchy—Liquidity > FVGs > OBs—you’re focusing on what actually moves the market.

All you need for profitability is the bias (as we discussed) and a simple entry model and to only trading in that daily bias direction.

Having this alongside the right mindset will make you a profitable trader.

Now this might sound great reading this, but theory will not make you money. Action will.

Once you have read this email, go into the charts and look. Can you find the daily bias? Are you still unsure? This tells you what your strengths and weaknesses are.

But here’s the thing: daily bias alone is not enough to make money from trading. We also need to wait for liquidity sweeps before we enter.

Now liquidity sweeps are quite advanced and deserve their own email so we won’t discuss it here.

But what you need to know is once you have the daily bias, you go to your entry time frame and wait for the liquidity sweep before you enter.

Everything outside of this is a distraction and will keep you unprofitable for years or even forever in a lot of cases.

But I don’t want that for you.

Now you know what to do, all that is left is to take action.

And as always, if you want me to personally teach how to condense your learning time frame from years to weeks, then you can learn more here.

Happy Trading,
Atif