Notes
- The information in this lecture serves to determine not only the daily bias but also the session bias.
- Bias is a crucial element of the strategy, but it needs to be flexible, not rigid.
- We should not rely solely on daily bias, as it may not always play out the way we expect. Market conditions can shift, and biases need to be adjusted accordingly.
- We must be flexible and avoid rigid thinking that restricts our ability to adapt when things don’t go as expected.
- Daily bias is based on higher time frame analysis (weekly, daily charts) and considers the economic calendar and market structure.
- Economic events like FOMC or Non-Farm Payroll are key drivers of market movement. These events can cause volatility and potential reversals in the market.
- Even if a bias seems clear, the market can behave unpredictably.
- The market moves toward areas with high liquidity, and understanding these areas can help traders predict where the price will go next.
- Managing emotions is critical, and a trader’s mindset can heavily influence their performance. Staying disciplined and following the rules is essential.
- Finding success in trading requires constant learning, flexibility, and adaptation.
- There are no shortcuts in trading. Success requires hard work, learning from mistakes, and having the patience to stick with it.
- We must be honest with ourselves and acknowledge that becoming a skilled trader takes time and effort.
- Michael recommends keeping a trading journal, whether electronically or by hand, to track biases, entry points, and market analysis.
- By documenting trades, we can improve our understanding of bias and learn from our mistakes.
- Quick results or instant success are a false expectation in trading. We should not put a time limit on our success but rather focus on the process and gradual improvement.
EURUSD - Draw On Liquidity On Weekly Chart
EURUSD - Hourly Chart
EURUSD - 15-Minute Chart
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