Mastering Daily Bias: How to Know If Today is Bullish or Bearish

You open the chart. You see a nice Order Block to Buy. You also see a nice Resistance to Sell.
Confusion sets in. "Which one works?"

The answer depends on your Daily Bias.
If the Daily Bias is Bullish, the Resistance will fail and the Support will hold.
If the Daily Bias is Bearish, the Resistance will hold and the Support will fail.

In this guide, we will fix your "Directional Dyslexia" by learning how to read the Institutional Compass.

1. What is Daily Bias?

Daily Bias is simply the High Probability Direction for the day.
It answers the question: "Is the Daily Candle likely to close Green (Up) or Red (Down)?"

If you align your intraday trades (M15/M5) with the Daily Bias, your win rate will skyrocket. It is like swimming with the river current instead of against it.

2. Concept 1: The Draw on Liquidity (DOL)

Price only moves for two reasons:

1. To take Liquidity (Stop Losses).
2. To rebalance an Imbalance (FVG).

The Rule: Look at the Daily Chart. Where is the nearest, most obvious "Pool of Money"?

• Previous Daily High (PDH): A magnet for Buy Stops.
• Previous Daily Low (PDL): A magnet for Sell Stops.
• Equal Highs/Lows: A massive magnet.

Determination: If price is closer to the Highs and the structure is Bullish, the bias is UP until that High is swept.

3. Concept 2: Strong vs. Weak Highs/Lows

Not all highs are equal.

• Strong Low: A Low that caused a Break of Structure (New High). The market should Respect this low. (Don't Sell).
• Weak High: A High that failed to break the Low. The market should Target (Break) this high. (Look to Buy).

Strategy: If you identify a Weak High on the Daily chart, your bias is Bullish. You aim for that High.

4. The PDH / PDL Strategy

The Previous Day's High (PDH) and Low (PDL) are the most important levels for Day Traders.

Scenario A: Expansion (Trend Continuation)

• If yesterday was a strong Green candle closing near the top.
• Bias: We expect price to retrace slightly and then break the PDH.
• Plan: Buy the dip. Target the PDH.

Scenario B: The Sweep (Reversal)

• If price opens, runs aggressively above the PDH, but fails to close above it (leaves a wick).
• Bias: The Liquidity has been taken. Reversal likely.
• Plan: Sell the fakeout. Target the PDL.

Bullish. 3. Where is the un-swept Liquidity? If Equal Highs above -> Bullish Target. ↗

5. What if the Bias is Unclear?

Sometimes the Daily chart is consolidating (Doich candles, messy wicks).
This means No Bias.

The Professional Move: Do not trade.
When the compass is spinning, you don't sail the ship. You wait for the market to break the range and show its hand.

6. Aligning Timeframes

Once you have the Daily Bias, drop to the H1.

• If Daily Bias is UP: Only look for Bullish Order Blocks or FVG on the H1/M15. Ignore all Sell signals.
• If Daily Bias is DOWN: Only look for Bearish Order Blocks. Ignore all Buy signals.

This filter alone will save you from 50% of your losing trades.

Final Thoughts

Trading without a Daily Bias is like driving with your eyes closed.
Start every morning by asking: "Where is the money?" (Liquidity).
Once you know where the money is, you know where the price is going.

Once you have the bias, execute the trade: How to Enter using FVG