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How I Mechanically Confirm Daily Bias (Using Daily Profiles) — Transcript

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  1. 0:00The only thing more important than bias
  2. 0:02for getting on the right side of the
  3. 0:03market is what you use to actually
  4. 0:05confirm the bias itself. And that's
  5. 0:07where daily profiles come in. This is
  6. 0:09something that uses the development of
  7. 0:11the current daily candle and tells you
  8. 0:13in a very simple way, is this a bias
  9. 0:15that's likely to play out in this day
  10. 0:17that I have established, or is it
  11. 0:19something that's invalid and I should
  12. 0:21avoid it entirely? It acts as its own
  13. 0:23filter. This is something that I use
  14. 0:25every single day in my trading, and I've
  15. 0:28been using daily profiles for years and
  16. 0:30years. This is the most refined and
  17. 0:33foundational version of it. So, let's
  18. 0:35get right into this. So, if you happen
  19. 0:36to be unfamiliar with my trading or any
  20. 0:39content that I've shared in the past,
  21. 0:41the first question you may be asking
  22. 0:42yourself is, what specifically is a
  23. 0:45daily profile? First, it's important to
  24. 0:47understand the actual function and logic
  25. 0:49behind using daily profiles. What you're
  26. 0:51seeing here are three parts of my
  27. 0:53system, bias, confirmation, and entry. I
  28. 0:56establish a bias using relevant swings
  29. 0:58off a daily time frame, confirm them
  30. 1:01with a daily profile, and then enter
  31. 1:03once I have that alignment using the
  32. 1:05daily profile as framework for that
  33. 1:07entry. The mistake that a lot of traders
  34. 1:09make is they establish this bias off the
  35. 1:11higher time frames, and then they jump
  36. 1:13immediately to seeking that entry. And
  37. 1:15that causes two main issues and
  38. 1:17mistakes. The first is that if you have
  39. 1:19this idea and you go right to entry,
  40. 1:21what's your timing aspect? Are you going
  41. 1:23to force a trade in that direction? When
  42. 1:25is that bias invalid? These are
  43. 1:27questions you have to ask yourself. The
  44. 1:29other part is that bias isn't always
  45. 1:31going to be correct. There's this
  46. 1:33misconception that if your bias is
  47. 1:35correct, you're going to make money on
  48. 1:36that day. If your bias is incorrect, you
  49. 1:38have to lose money. That is not the
  50. 1:40case. You do not need to be right on
  51. 1:42your bias every single time, and you
  52. 1:44won't be. That's why we layer in a
  53. 1:46confirmation step, because the days that
  54. 1:48we get that bias wrong and the daily
  55. 1:50profile shows us it's invalid before we
  56. 1:53jump to an entry, we filter those days
  57. 1:55out and we avoid taking unnecessary
  58. 1:57losses. So, it's not only helping us
  59. 1:59frame an entry properly and getting that
  60. 2:02timing right, but it's also filtering
  61. 2:04out the days that were incorrect on a
  62. 2:06bias. Overall, it's taking us from being
  63. 2:08a predictor on the market just relying
  64. 2:11on our bias and then trying to get on
  65. 2:12side to someone who executes with reason
  66. 2:15when we have confirmation of the idea
  67. 2:18that alignment tells us we can now take
  68. 2:20an entry. So, what this actually looks
  69. 2:22like in a chart, let's take this example
  70. 2:24here. This is a daily time frame just
  71. 2:26for the sake of this case. We have a
  72. 2:29manipulation of a relevant low on the
  73. 2:31daily with failure swings above. This is
  74. 2:33a classic framework. This following day
  75. 2:36I would look to trade away from this
  76. 2:38manipulation low into the failure swing
  77. 2:40high. So, I'm assuming this daily candle
  78. 2:42should expand to the upside in this
  79. 2:44fashion. That is my bias, but I'm not
  80. 2:47seeing this and saying on the open of
  81. 2:48this next candle, just because I assume
  82. 2:50price should go higher, doesn't mean I
  83. 2:52just immediately and blindly take an
  84. 2:53entry. That's where we start to profile
  85. 2:56the development of that daily candle.
  86. 2:58So, for example, we have this idea the
  87. 3:01daily candle should print in this way
  88. 3:02and we have support from the higher time
  89. 3:04frame, but we watch the development of
  90. 3:07the opening part of that daily candle
  91. 3:09and that's either going to confirm that
  92. 3:11we are in alignment or invalidate the
  93. 3:13bias and the idea that we have. There
  94. 3:15are three main daily profiles that once
  95. 3:18we see them in the development, that
  96. 3:20means the market is now actionable and
  97. 3:22we would take trades alongside that.
  98. 3:24Because we're using the daily candle
  99. 3:26alongside our bias, we have this idea
  100. 3:28the daily candle should expand in one
  101. 3:31direction or the other, we want to know
  102. 3:33what the daily candle is made up of. And
  103. 3:35that's these three sessions here of
  104. 3:37Asia, London, and New York. Asia goes
  105. 3:39from 18:00 to 1:00, London from 1:00 to
  106. 3:428:00, New York from 8:00 to the close.
  107. 3:45We're really focused on the earlier part
  108. 3:46of New York, but we'll explain that
  109. 3:48later on. Each of these sessions is
  110. 3:49broken up into 7-hour time windows that
  111. 3:54form the daily candle. And we're going
  112. 3:56to use this to show the sessions on the
  113. 3:58chart by using a 7-hour time frame.
  114. 4:01That's going to give us three candles
  115. 4:04within the daily candle that are going
  116. 4:06to be used to profile that day. So, what
  117. 4:08you see here, if we were on a 7-hour
  118. 4:10time frame, we have the 18 candle, which
  119. 4:13is representing the Asia session. We'd
  120. 4:15have a 1:00 candle representing the
  121. 4:17London session, and an 8:00 candle for
  122. 4:19the New York session. This provides you
  123. 4:21a higher time frame perspective without
  124. 4:24having noise from the lower time frames
  125. 4:26to get a daily profile inside of the
  126. 4:28current day and follow very mechanical
  127. 4:31steps. And again, we're using this
  128. 4:337-hour time frame because we get the
  129. 4:35open and close of these candles in
  130. 4:38alignment with the daily candle
  131. 4:40sessions. And this is how we give
  132. 4:42relevance to this time frame because it
  133. 4:44ties into the sessions of the daily
  134. 4:46candle. And I always say the market
  135. 4:48doesn't recognize the open high low
  136. 4:51close of an hourly candle at 7:00 a.m.
  137. 4:55or 4-hour open high low close at 6:00
  138. 4:58a.m. These are not things that the
  139. 5:00market recognizes, but this time frame
  140. 5:02captures session logic, and I'm going to
  141. 5:05show you why that's so crucial. Here we
  142. 5:08have a visual of the average volatility
  143. 5:11inside a current day hour by hour and
  144. 5:14broken up in between 7-hour windows. We
  145. 5:18have this Asia session, London, and New
  146. 5:20York. You're already immediately seeing
  147. 5:21a clear difference in these sessions. We
  148. 5:23have the Asia session, which is very low
  149. 5:26volatility. We have London, which gets a
  150. 5:28spike and is slightly higher, and then
  151. 5:31significant difference in the New York
  152. 5:33session where that volatility is the
  153. 5:35highest of that day. So, we have these
  154. 5:37three 7-hour candles that actually
  155. 5:40capture this logic, and each session has
  156. 5:43its own function. And this is just
  157. 5:45adding to the point that we're using
  158. 5:47this alongside things that the market
  159. 5:49actually cares about and reacts to.
  160. 5:51Things like session opens and news
  161. 5:54events. We can already see the spike
  162. 5:56here of that 3:00 London session open.
  163. 5:59We get that initial volatility and
  164. 6:01sustaining it for a period. Then this
  165. 6:04large spike is not random. It's
  166. 6:06happening because we get 8:30 news
  167. 6:08events on many days, low and high
  168. 6:10impact. And then we have that 9:30 open
  169. 6:12for the indices market. And while I'm
  170. 6:14referring to this in the context of the
  171. 6:16indices market, this is pulled from NQ,
  172. 6:19this is a consistent thing through most
  173. 6:21major markets, whether it's gold,
  174. 6:23whether it's oil, whether it's even euro
  175. 6:25futures, it's all consistent and we
  176. 6:28focus towards that New York session. And
  177. 6:31one more point on the data behind these
  178. 6:33sessions inside of the daily candle, I
  179. 6:36want you to keep these in mind as we
  180. 6:37move through this lesson. The average
  181. 6:39amount of the daily range that is made
  182. 6:41up by the sessions. Asia is 17% London
  183. 6:4523% and then New York is 60%. That's the
  184. 6:49majority of the daily candle in one
  185. 6:52tightened window of time. Then we have
  186. 6:54the close in the direction of the daily
  187. 6:56candle. For example, we have a bias that
  188. 6:58the daily candle should either be an up
  189. 7:00close or a down close candle because
  190. 7:02we're getting that based on the
  191. 7:03framework from the higher time frame.
  192. 7:06The Asia session only closes in that
  193. 7:07direction 58% of the time. London 62.
  194. 7:12Then we see New York, it's 86% of the
  195. 7:14time. That is a significant jump higher
  196. 7:18from these two sessions before that are
  197. 7:20basically coin flips, hardly better than
  198. 7:22that. New York session is the one that
  199. 7:24closes and makes that move in the
  200. 7:26direction of the daily candle and makes
  201. 7:29up the majority of it. So we see this
  202. 7:31logic coming together of the sessions,
  203. 7:33tying that into the 7-hour time frame
  204. 7:35and that brings weight to the things
  205. 7:37that we look at in the daily profile.
  206. 7:39Next is what the three profiles that
  207. 7:41we're going to look for actually are in
  208. 7:43the market. We first have the 18
  209. 7:46reversal, which is when the Asia session
  210. 7:48in that first 7-hour candle of the day
  211. 7:50makes the intraday high or low, and then
  212. 7:54the 1:00 candle expands away, leaving
  213. 7:57the New York session to be another
  214. 7:59continuation for the rest of the range
  215. 8:01inside of that day. Then we have the
  216. 8:031:00 candle reversal. This is when that
  217. 8:0618 candle either makes an opposing run,
  218. 8:08consolidates, and then that 1:00 candle
  219. 8:11comes in, runs out the range of the Asia
  220. 8:14session, and then reverses in the
  221. 8:16opposing direction, leaving the New York
  222. 8:18session to be in a continuation. And
  223. 8:20finally, we have the 8:00 reversal, and
  224. 8:23this is when both or one of the 18 or
  225. 8:261:00 candle either consolidate or make
  226. 8:30an opposing run. Basically, these two
  227. 8:32sessions of Asia and London are not
  228. 8:34establishing an intraday reversal like
  229. 8:37they do here, leaving us to demand the
  230. 8:408:00 candle or that New York session to
  231. 8:42establish an intraday reversal and then
  232. 8:44expand off of that in the direction of
  233. 8:47our bias. And just for the sake of the
  234. 8:49visual, here are the three profiles in a
  235. 8:51bearish example when you have a bias for
  236. 8:53the day that we'd be seeking the
  237. 8:55downside move inside of that daily
  238. 8:57candle. It is the exact same logic just
  239. 9:00on the other side of the market. Now
  240. 9:02that you have this idea and picture in
  241. 9:03your mind of what these three profiles
  242. 9:05look like that we're going to be seeking
  243. 9:07out inside of these days that we have a
  244. 9:09bias, we want to move into the actual
  245. 9:11process for how we apply this. And like
  246. 9:14I said earlier, we're moving away from
  247. 9:16being a predictor of the market and
  248. 9:18being so tied into that to moving into
  249. 9:20something that's more of a process. And
  250. 9:23that's where we get into these things
  251. 9:24called if this, then that statements. We
  252. 9:27follow a more mechanical, step-by-step
  253. 9:30process, and we say if this happens
  254. 9:33inside of the daily profile or in these
  255. 9:35sessions, then this should happen, and
  256. 9:37then this should be my next step in the
  257. 9:39next session. That's how we follow this
  258. 9:42intraday and stay tied into rules while
  259. 9:45taking in all of the context that the
  260. 9:47market is providing us. So, the first
  261. 9:49step in daily profiling, and this is
  262. 9:51universal regardless of what your bias
  263. 9:53is, is to allow the 18 candle, that Asia
  264. 9:56session, to print without you
  265. 9:59participating in it. Why we do this is
  266. 10:01for a two main reasons, and it's behind
  267. 10:04the logic of the daily profile that each
  268. 10:06session is a balance between context in
  269. 10:09the daily candle and likeliness to
  270. 10:11expand. The Asia session is on the lower
  271. 10:14side for both of those things. We know
  272. 10:16it's low context because the purpose of
  273. 10:19daily profile is that we use the
  274. 10:21development of the daily candle to tell
  275. 10:23us what should happen next in these
  276. 10:24execution windows. When we're in the
  277. 10:26Asia session, what do you look left on
  278. 10:29inside of the day? We only have a few
  279. 10:31hours, and we don't have enough movement
  280. 10:33in price or context to even understand
  281. 10:36what the next session should do, let
  282. 10:38alone the rest of the day. And it's also
  283. 10:40low in its likeliness to expand. If we
  284. 10:42just think back to the data that we just
  285. 10:44talked about, Asia has a very low
  286. 10:47average volatility, it does not make
  287. 10:48large ranges, and also it has a low
  288. 10:51percent chance of closing in the
  289. 10:54direction of that daily candle. You're
  290. 10:56trying to capture a bias, if it's not
  291. 10:58likely to trade in that direction, it's
  292. 10:59making opposing runs or consolidating,
  293. 11:02then it should be none of your business.
  294. 11:03It's a low probability time in the
  295. 11:05market. going to completely let it go.
  296. 11:08And coming back to that piece on the
  297. 11:10context, let's take an example here
  298. 11:12where the bias for that daily candle is
  299. 11:13bullish. When this 18 candle prints on
  300. 11:17the chart, you still have all of these
  301. 11:19three profiles that could be in play.
  302. 11:22You may see that London session expand
  303. 11:24away, and you're in an 18 candle
  304. 11:25reversal. You may see London session run
  305. 11:28out the range of that 18 candle, and
  306. 11:30then price reverses. Or that London
  307. 11:33session may just consolidate or sustain
  308. 11:35an opposing run and then New York
  309. 11:37session has to form that reversal.
  310. 11:39These three profiles that we are trying
  311. 11:41to get full confirmation on that are
  312. 11:44ideal for that daily candle to expand
  313. 11:46any one of the three could still play
  314. 11:48out regardless of how this 18 candle
  315. 11:50prints. So we want to let this go.
  316. 11:53London sits in this mid-tier for the
  317. 11:55sessions for likeliness to expand
  318. 11:58because we get that 3:00 London session
  319. 12:00open where volatility does spike and we
  320. 12:03often times can see movement there and
  321. 12:05it's also slightly increased to close in
  322. 12:07the direction of that daily candle, but
  323. 12:10it's not to an extent that it's as
  324. 12:11interesting to participate in and we can
  325. 12:14use this to our advantage. This video is
  326. 12:16so focused on getting you that
  327. 12:18foundation down and making this as
  328. 12:20simple as possible on you. If you allow
  329. 12:22that London session to print and we use
  330. 12:24these both as context, we're going to
  331. 12:26have that full idea for New York session
  332. 12:29and we're going to have the clearest
  333. 12:30picture possible for what we need to
  334. 12:32see, expect, and demand here. Coming
  335. 12:35back to these if this, then that
  336. 12:37statements, we're going to follow this
  337. 12:38process. Always allow that 18 candle to
  338. 12:41print and use the development of that
  339. 12:431:00 candle to determine the profile.
  340. 12:46Looking at this here, if the 1:00 candle
  341. 12:49expands away from the 18 reversal, then
  342. 12:52seek an 8:00 candle continuation. We see
  343. 12:56this idea here, we allow this to print
  344. 12:58in the market, we don't participate. If
  345. 13:00we see that 1:00
  346. 13:02continue and expand away from that
  347. 13:05intraday reversal when we are bullish in
  348. 13:07this example or bearish if it's
  349. 13:09expanding away from a high, then we
  350. 13:11assume the market is already in the
  351. 13:13continuation and we look for an 8:00
  352. 13:15candle continuation. What this profile
  353. 13:18is doing is saying that the Asia session
  354. 13:20set an intraday reversal and the 1:00
  355. 13:23candle in London expanded away and
  356. 13:26continued that move. This example here
  357. 13:28is of course we're looking for that
  358. 13:30upside move. So we're trying to confirm
  359. 13:31a bullish daily profile. But inside of
  360. 13:34expansion daily candles, which is what
  361. 13:36we're trying to frame, we do not see
  362. 13:38deeper retracements back in the opposing
  363. 13:41direction once that continuation is
  364. 13:43started. If the market breaks away like
  365. 13:45this from that intraday reversal, we
  366. 13:48assume that New York session, when we
  367. 13:50understand it's the main time for
  368. 13:51volatility, the main time for closing in
  369. 13:54the direction of that daily candle,
  370. 13:56making the majority of it, we are
  371. 13:58already in the continuation and we don't
  372. 14:00need price to return to any specific
  373. 14:02area to start that continuation. We
  374. 14:04assume it is already in place and we
  375. 14:07look for entry signatures in that
  376. 14:08direction. The next one is if the 1:00
  377. 14:11candle reverses off the 18 candle range,
  378. 14:15then seek 8:00 candle continuation. This
  379. 14:18is going to be your London reversal,
  380. 14:20where that 18 candle either
  381. 14:22consolidates, sets a range, or it makes
  382. 14:25some level of an opposing run to your
  383. 14:28bias. And that 1:00 candle comes in and
  384. 14:31runs out the Asia session range and then
  385. 14:33moves back and expands in the direction
  386. 14:36of your bias, forming that intraday
  387. 14:39reversal, and then New York session,
  388. 14:41again, if we already have the
  389. 14:43established reversal, we are assuming
  390. 14:45continuation in this day and New York
  391. 14:47will expand in that direction. And
  392. 14:50lastly, if we don't get alignment of one
  393. 14:52of those two scenarios, then we end up
  394. 14:54here where if the 18 and 1:00 candle
  395. 14:58fail to establish an intraday reversal,
  396. 15:00then seek an 8:00 candle reversal. So
  397. 15:03this is the case when that 18 candle and
  398. 15:061:00 candle either consolidate or form
  399. 15:09some level of an opposing run and do not
  400. 15:12create an intraday high or low to trade
  401. 15:15away from. When that happens, we know
  402. 15:17that when we go into this New York
  403. 15:19session, it has to form a new intraday
  404. 15:22reversal to then expand off of. So, we
  405. 15:25know exactly where to focus on in the
  406. 15:27market and what to demand from this
  407. 15:29session before trying to put on an
  408. 15:31entry. This is the other example that
  409. 15:33I'm referring to where these could be
  410. 15:34just part of an opposing run from the
  411. 15:37direction of that daily candle where we
  412. 15:39have the bias. Let's say we're bullish
  413. 15:40on this day. The 18 candle and the 1:00
  414. 15:43candle sustain a more shallow opposing
  415. 15:46run. And then when we look at this,
  416. 15:48there's no intraday reversal established
  417. 15:50and we can assume this just by
  418. 15:52understanding there's a small wick on
  419. 15:53this candle, the New York session has to
  420. 15:56run that out, establish a new intraday
  421. 15:58higher low, and then expand off of that.
  422. 16:01Now, the third step here, of course, is
  423. 16:03you've got your development inside of
  424. 16:05the Asia and London session. Now, we
  425. 16:07want to be looking to trade inside of
  426. 16:09the 8:00 candle time window. We use
  427. 16:12these two previous 7-hour candles for
  428. 16:14the Asia and London session to get all
  429. 16:16the context we need and now we place
  430. 16:19that focus into the New York session,
  431. 16:21which is the highest for likeliness to
  432. 16:23expand, and it is also highest context.
  433. 16:27We didn't just take our bias and think,
  434. 16:29"Let me enter the market." We have taken
  435. 16:31in all the context that the market has
  436. 16:33provided to that point and use it to our
  437. 16:36advantage to know exactly what we should
  438. 16:38be seeking and demanding inside of this
  439. 16:40session. Now, when you know what to
  440. 16:42expect and look for inside of this New
  441. 16:44York session using the daily profile,
  442. 16:47your only next step is to seek a valid
  443. 16:49entry. And while this video is not
  444. 16:51focused on my personal entry technique,
  445. 16:54as that's a topic for another time, you
  446. 16:56can use this logic of the 7-hour candles
  447. 16:59and positioning inside of that New York
  448. 17:01session with any type of entry logic
  449. 17:03that may work best for you. Because you
  450. 17:05have this time window that we have this
  451. 17:08expectation for what price should do,
  452. 17:11when it should do it, and where it
  453. 17:13should deliver off of. Or you can go go
  454. 17:15any of my previous trade recaps. You're
  455. 17:17going to find these exact same steps and
  456. 17:19look at how I'm entering inside of these
  457. 17:21sessions using opposing candles and a
  458. 17:24continuation sequence. Before getting
  459. 17:26into real chart examples, the last
  460. 17:28profile we want to know is when there's
  461. 17:30a full invalidation, regardless of what
  462. 17:33our bias is. That's going to be the case
  463. 17:36when either both or one of the 18 and
  464. 17:391:00 candle make a significant expansion
  465. 17:43through the overnight session to the
  466. 17:45point that we've captured the entire
  467. 17:46range of that daily candle and there's
  468. 17:49no more room left for that New York
  469. 17:51session to expand through. We've
  470. 17:54exhausted the range. When we have this
  471. 17:56type of outlier development where you
  472. 17:58get the largest ranges in the overnight
  473. 18:00session, which is not common, but when
  474. 18:03you have outlier scenarios, you get
  475. 18:05outlier development in the New York
  476. 18:07session. So, under the majority of
  477. 18:09conditions where we're going to see the
  478. 18:10largest ranges here, this is the type of
  479. 18:12condition where it's low-quality and low
  480. 18:15likeliness to expand because we've used
  481. 18:18up the majority of that daily range that
  482. 18:20we were initially looking to capture.
  483. 18:22So, it doesn't matter if you're bullish
  484. 18:24or bearish on the day and whether this
  485. 18:26expansion takes place higher or lower
  486. 18:28because in either case, it makes no
  487. 18:30difference. Let's assume on this day
  488. 18:32here, we have a bullish bias. We open
  489. 18:34the chart and we're looking for a
  490. 18:36continuation higher and these two
  491. 18:38sessions have expanded the daily range.
  492. 18:40There's no more room left to capitalize
  493. 18:42on realistically inside of that New York
  494. 18:45session. If we're bearish on a day like
  495. 18:47this and we see this exact same
  496. 18:49development, well, we don't want to
  497. 18:51trade this to the downside because we
  498. 18:52have this large and extensive move away
  499. 18:55from that daily candle open and large
  500. 18:57wicks do not support expansion. This is
  501. 19:00something I've talked about many times
  502. 19:02before. We want to see shallow wicks on
  503. 19:04that daily candle, that opposing run, to
  504. 19:06then capture the body of that daily
  505. 19:09candle. This large opposing run is also
  506. 19:11a negative condition. So, it doesn't
  507. 19:13matter what your bias is and which
  508. 19:15direction this overnight expansion takes
  509. 19:17place, it is always a full invalidation.
  510. 19:20Now, with this new understanding, let's
  511. 19:22move into some real chart examples from
  512. 19:25top to bottom on these opportunities
  513. 19:27that I've framed from the bias down to
  514. 19:29the daily profile confirmation and then
  515. 19:31actually positioning myself to get on
  516. 19:33side. Looking at this first example,
  517. 19:36we're on the daily chart and we're using
  518. 19:37relevant swings to determine the bias.
  519. 19:40Keeping it that simple, we have a
  520. 19:42manipulation off the highs, respecting
  521. 19:45that initial reversal. The previous day
  522. 19:47broke away from that manipulation while
  523. 19:50we still have a draw open in the market
  524. 19:52in the form of an opposing relevant
  525. 19:54swing. So, this next day following this,
  526. 19:56I'm going to have a bearish bias looking
  527. 19:59for an expansion to the downside. And
  528. 20:01following the rules of daily profiling,
  529. 20:03we're going to allow the 18 candle to
  530. 20:05print and use the 1:00 candle
  531. 20:07development to give us the full
  532. 20:09perspective on the daily profile to
  533. 20:11understand what the New York session
  534. 20:12should do. So, we take a look here, the
  535. 20:1418 candle opens up, makes an opposing
  536. 20:17run to the upside, our bias is bearish.
  537. 20:20The high does not form a reversal and we
  538. 20:22see that 1:00 candle come in, run up
  539. 20:24into the high and then expand to the
  540. 20:26downside. This to me shows the
  541. 20:28development of a London reversal and I'm
  542. 20:31going to go into that New York session
  543. 20:32saying my bias is confirmed, the
  544. 20:35development is showing this wants to
  545. 20:36play out to the downside and we have
  546. 20:38further room in the New York session to
  547. 20:40capture that continuation. On the
  548. 20:4215-minute here, I can look left to that
  549. 20:44high of day in that London session and
  550. 20:46we have a reversal confirmation, that
  551. 20:48series of up close candles close through
  552. 20:51and then I'm assuming we're in the
  553. 20:53continuation during New York because of
  554. 20:55the daily profile and these are valid
  555. 20:58opposing candles that are closed through
  556. 21:00and this becomes my entry with a stop at
  557. 21:02this high. In the continuation and when
  558. 21:05the market is expanding, valid opposing
  559. 21:07candles, which are closed through, will
  560. 21:09be respected. Entries are not a topic of
  561. 21:12this video, but I still want to share
  562. 21:13with you a small piece of what I'm
  563. 21:15looking for using the daily profile to
  564. 21:18actually frame an entry and understand
  565. 21:20where to take it. If we come back to the
  566. 21:227-hour time frame, we see the
  567. 21:23follow-through in the New York session,
  568. 21:2618 candle opposing run, reversal in the
  569. 21:291:00 candle, expansion and continuation
  570. 21:32in the 8:00 candle, completing the
  571. 21:35development of that expansion daily
  572. 21:37candle. This right here is the mover
  573. 21:39looking to capture. Moving on to the
  574. 21:41second example, we have again a
  575. 21:43framework using relevant swings off the
  576. 21:45daily. We see a relevant high in the
  577. 21:48market that was manipulated and we
  578. 21:50closed back down into the range off of
  579. 21:52it. And then at the lows, we see a
  580. 21:54series of failure swings to this
  581. 21:57opposing relevant low. This is an ideal
  582. 21:59framework again, trading away from the
  583. 22:01manipulation into failure swings. This
  584. 22:04next day, I want to trade away from this
  585. 22:06high and see price expand to the
  586. 22:08downside into the lows. Now getting into
  587. 22:10our daily profile process, I want to be
  588. 22:12trading away from this high, so I'm
  589. 22:13going to ask is there an invalidation or
  590. 22:15are we confirming one of our three
  591. 22:18profiles into the New York session? We
  592. 22:20have the 18 candle, which formed an
  593. 22:22initial high, and then in that 1:00
  594. 22:24candle, we didn't consolidate or form a
  595. 22:26new reversal, it broke away from that 18
  596. 22:30candle high. So it's at this time, I'm
  597. 22:32assuming we're in an 18 candle reversal.
  598. 22:34The New York session does not have to
  599. 22:36reach back up to any of these highs.
  600. 22:38We're already in the assumed
  601. 22:40continuation and we have confirmation of
  602. 22:42a high of day with that draw still open
  603. 22:45below off the daily chart using those
  604. 22:46failure swings, I want to see the New
  605. 22:48York session complete that move and
  606. 22:50expand to the downside. Down on the
  607. 22:5215-minute, we have that high of day in
  608. 22:54the Asia session, London breaks away,
  609. 22:57and again using opposing candles, we're
  610. 22:59assuming price is already in the
  611. 23:01continuation because during these
  612. 23:03expansion days, we don't see deep
  613. 23:05retracements. It doesn't need to return
  614. 23:07back up to the highs. We're already in
  615. 23:09that continuation. We have a valid
  616. 23:11opposing candle, closed through, the
  617. 23:14open comes in, volatility kicks price
  618. 23:16lower, and that New York session expands
  619. 23:19to the downside. On the 7-hour, we see
  620. 23:21that 18 candle reversal, 1:00 candle
  621. 23:24confirmation by breaking away from this
  622. 23:26high, and then the 8:00 candle expands
  623. 23:29to the downside in that continuation,
  624. 23:31forming the majority of that daily
  625. 23:33range. Into this third example, we have
  626. 23:35a relevant high off the daily time
  627. 23:37frame, a previous day which manipulated
  628. 23:40that high, closed back down into the
  629. 23:42range. That means the following day I
  630. 23:44want to see a continuation, price
  631. 23:46expanding away from this high. And just
  632. 23:49like each of these examples, I have a
  633. 23:51bias, but I need confirmation of that
  634. 23:54before I actually execute. Daily profile
  635. 23:56is this bridge between the idea and you
  636. 23:58actually taking the trade. Here in this
  637. 24:01daily profile development, we're seeing
  638. 24:02something a little bit different. We are
  639. 24:04looking to trade away from this high,
  640. 24:07and we're going to hold onto that
  641. 24:08framework and that bias, but we look off
  642. 24:10the highs inside of this daily profile,
  643. 24:12the 18 candle established a high, but
  644. 24:15the 1:00 candle neither formed a new
  645. 24:17reversal and reversed off of it or broke
  646. 24:20away from that 18 candle high. Instead,
  647. 24:22it remained neutral and formed a failure
  648. 24:25swing to that intraday high. That means
  649. 24:28we are going to go into this 8:00 candle
  650. 24:30demanding that price first runs that
  651. 24:33out, and then we can expand to the
  652. 24:35downside. So, we're going to view and
  653. 24:36filter out price to only focus on this
  654. 24:39intraday high. Price eventually made
  655. 24:41this opposing run during the New York
  656. 24:43session up into that 18 candle high,
  657. 24:45forming a new high of day, and then we
  658. 24:48get the sequence where I'm confirming
  659. 24:50the reversal using these up close
  660. 24:52candles paired with the open, and then
  661. 24:55we have a continuation signature. That's
  662. 24:57where I'm looking to position for that
  663. 24:59move understanding once price runs out
  664. 25:02the intraday high, we are in that one
  665. 25:04defined daily profile. Now I just need
  666. 25:06my entry sequence to get on side. This
  667. 25:09is where you can see on the 7-hour in
  668. 25:11the 18 and 1:00 candle, there was no
  669. 25:14valid high of day established and we
  670. 25:16didn't go into this New York session
  671. 25:18with any bearish daily profile, meaning
  672. 25:20we knew exactly what we need to focus on
  673. 25:22and demand from the market inside of the
  674. 25:24New York session and that is trading up
  675. 25:27into that intraday high forming an 8:00
  676. 25:29candle reversal, getting our entry
  677. 25:31sequence and positioning for that
  678. 25:33expansion for the day. And this is
  679. 25:35something important to touch on
  680. 25:36especially with an example like this. If
  681. 25:38we're in this profile and we are
  682. 25:40demanding price to run out that intraday
  683. 25:42high first before we can look to trade
  684. 25:45the downside because we want to align
  685. 25:47that bearish daily profile. If the
  686. 25:49market trades up but fails to take that
  687. 25:51high and then breaks down, you don't
  688. 25:54have a trade. That is not alignment.
  689. 25:56We're not going to chase these
  690. 25:57opportunities. We want to get our daily
  691. 25:59profile, demand what we need from the
  692. 26:01market because we know in this New York
  693. 26:03session it is very specific of what
  694. 26:05we're looking for. We either are
  695. 26:07provided it and are executing that trade
  696. 26:10or it's not there or our bias is
  697. 26:12invalidated and we let the day go. If
  698. 26:14you take away anything from this video,
  699. 26:16it's that daily profiles as a
  700. 26:17confirmation step in between bias and
  701. 26:20entries is to move you away from
  702. 26:21predicting the market and into a
  703. 26:23structured step-by-step process, one
  704. 26:26that makes you think and act like a
  705. 26:28trader. So with that said, I hope you
  706. 26:30found this video valuable and I will see
  707. 26:32you in the next one.

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