forming a daily bias: (stats included) a thread 🧵
Luckshury@Luckshuryy
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Jan 10, 2025
~2 min read
1
forming a daily bias:
(stats included)
a thread 🧵
(stats included)
a thread 🧵
2
candle formations:
engulfing candles - I look for a candle to wick below the previous candle and close at least beyond the 50% mark the previous candle (bullish engulfing).
I find this to be as effective as waiting for the entire previous candle to be engulfed.
the following day will be biased towards the direction of the previous day engulfing candle.
shooting star - my favourite daily formation, these often result in better entries to much larger moves, failure to extend above/below previous day and end up mean reverting.
example ↓
engulfing candles - I look for a candle to wick below the previous candle and close at least beyond the 50% mark the previous candle (bullish engulfing).
I find this to be as effective as waiting for the entire previous candle to be engulfed.
the following day will be biased towards the direction of the previous day engulfing candle.
shooting star - my favourite daily formation, these often result in better entries to much larger moves, failure to extend above/below previous day and end up mean reverting.
example ↓
3
one time-framing:
the most basic thing I always check for - an aggressively trending move.
daily timeframe, for a bullish example - is the daily candle printing 3 or more consecutive daily highs in a row whilst not wicking below previous day.
yes = I will only follow that direction for the remainder of the day should i take any trades.
no = move to next step
Its a simple and effective way to not get caught offside against an aggressively trending market.
example ↓
the most basic thing I always check for - an aggressively trending move.
daily timeframe, for a bullish example - is the daily candle printing 3 or more consecutive daily highs in a row whilst not wicking below previous day.
yes = I will only follow that direction for the remainder of the day should i take any trades.
no = move to next step
Its a simple and effective way to not get caught offside against an aggressively trending market.
example ↓
4
london session:
london is the most unlikely out of the sessions to put in a pivot for the day, thus I always will look to fade moves back towards a london daily high/low.
particularly on Wednesdays, it has an increased likelihood of being taken out in crypto markets.
1) has london session put in the daily high/low so far
2) identify a key poi I can use to fade price back towards that pivot
example ↓
london is the most unlikely out of the sessions to put in a pivot for the day, thus I always will look to fade moves back towards a london daily high/low.
particularly on Wednesdays, it has an increased likelihood of being taken out in crypto markets.
1) has london session put in the daily high/low so far
2) identify a key poi I can use to fade price back towards that pivot
example ↓
5
vwap close:
previous day's vwap close has a 77% chance on average of being tested the following day.
If it has not been tested, im keen to look towards it as a target for the remainder of the day.
simple but efficient due to data collection.
example ↓
previous day's vwap close has a 77% chance on average of being tested the following day.
If it has not been tested, im keen to look towards it as a target for the remainder of the day.
simple but efficient due to data collection.
example ↓
6
market structure:
what is structure doing today?
most people will look at structure from a top down perspective, but for my intra-day trades, I like to isolate market structure on a per-day basis.
what is structure doing today, how can I follow that to give me a heads up on todays directional bias.
ignoring the past and focusing solely on todays pa, allows me to eliminate a lot of noise.
example ↓
what is structure doing today?
most people will look at structure from a top down perspective, but for my intra-day trades, I like to isolate market structure on a per-day basis.
what is structure doing today, how can I follow that to give me a heads up on todays directional bias.
ignoring the past and focusing solely on todays pa, allows me to eliminate a lot of noise.
example ↓
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hope you found this useful as it’s an important start to every trading day.
be sure to like and follow for more knowledge like this and let me know down below any further topics you would like covered.
be sure to like and follow for more knowledge like this and let me know down below any further topics you would like covered.