How I Mechanically Confirm Daily Bias (Using Daily Profiles)

The only thing more important than bias for getting on the right side of the market is what you use to actually confirm the bias itself.

And that's where daily profiles come in. This is something that uses the development of the current daily candle and tells you in a very simple way, is this a bias that's likely to play out in this day that I have established,

or is it something that's invalid and I should avoid it entirely? It acts as its own filter.

This is something that I use every single day in my trading, and I've been using daily profiles for years and years.

This is the most refined and foundational version of it. So let's get right into this.

So if you happen to be unfamiliar with my trading or any content that I've shared in the past, the first question you may be asking yourself is what specifically is a daily profile?

First, it's important to understand the actual function and logic behind using daily profiles.

What you're seeing here are three parts of my system, bias, confirmation, and entry.

I establish a bias using relevant swings off the daily

time frame confirm them with a daily profile and

then enter once i have that alignment using the daily

profile as framework for that entry the mistake that a lot of

traders make is they establish this bias off the higher time

frames and then they jump immediately to seeking that entry

and that causes two main issues and mistakes

the first is that if you have this idea and you go right to entry

what's your timing aspect are you going to force a trade in that

direction when is that bias invalid these

are questions you have to ask yourself the other part is

that bias isn't always going to be correct there's this misconception

that if your bias is correct you're going to make money on that

day if your bias is incorrect you have to lose money that is

not the case you do not need to be right on your bias every

single time and you won't be that's why we layer in a confirmation step because the days that we get that bias wrong and the daily

profile shows us it's invalid before we jump to an entry

we filter those days out and we avoid taking unnecessary

losses so it's not only helping us frame an

entry properly and getting that timing right but

it's also filtering out the days that were incorrect on

a bias overall it's taking us from being a predictor

on the market just relying on our bias and then trying to get on side

to someone who executes with reason when

we have confirmation of the idea that

alignment tells as we can now take an entry so what this actually

looks like in a chart let's take this example here this

is a daily time frame just for the sake of this case we

have a manipulation of a relevant low on

the daily with failure swings above this is a classic framework

this following day i would look to trade away from this

manipulation low into the failure swing high so i'm assuming this

daily candle should expand to the upside in this fashion that

is my bias but i'm not seeing this and saying on the open

of this next candle just because i assume price should go higher doesn't

mean i just immediately and blindly take an entry that's where

we start to profile the development of that

daily candle so for example we have this idea the

daily candle should print in this way we have support from the higher

time frame but we watch the development of the

opening part of that daily candle and that's either going to

confirm that we are in alignment or invalidate

the bias and the idea that we have there are three main

daily profiles that once we see them in the development

that means the market is now actionable and we would take

trades alongside that because we're using the daily

candle alongside our bias we have this idea the daily candle

should expand in one direction or the other we

want to know what the daily candle is made up of and that's

these three sessions here of Asia London and New York Asia goes from 18 to 1 London from 1 to 8 New York from

eight to the close we're really focused on the earlier part of New

York but we'll explain that later on each of these sessions is

broken up into seven hour time windows

that form the daily candle and we're

going to use this to show the sessions on the chart by

using a seven hour time frame that's going to give us

three candles within the daily candle that

are going to be used to profile that day so what

you see here if we were on a seven hour time frame we have the

18 candle which is representing the Asia session we'd

have a one o'clock candle representing the London session and

an eight o'clock candle for the New York session this provides

you a higher time frame perspective without having noise

from the lower time frames to get a daily profile inside

of the current day and follow very mechanical steps

and again we're using this seven hour time frame because

we get the open and close of these candles

in alignment with the daily candle sessions and

this is how we give relevance to this time frame because it

ties into the sessions of the daily candle

and i always say the market doesn't recognize the

open high low close of an hourly candle at

7 a.m or a four hour open high low close at 6 a.m these are not things that the market recognizes but this time frame captures session logic and i'm going to show you