Higher-timeframe bias: how do you set it each day?
The higher time frame gives the day its bias — long, short or neutral — before any entry is considered. Setting the bias is a morning ritual with real consequences for the day's trades.
What's your ritual?
- the time frame and tools you use for bias
- how you express the bias as rules
- what you do on days with no clear bias
The moving averages guide and trend lines guide are the common bias tools.
Background: Moving averages explained: SMA and EMA
Moving averages smooth out price noise to show the trend. How simple and exponential averages are calculated, which periods traders use and where they fail.
What is the difference between SMA and EMA?
An SMA weights every period equally. An EMA gives more weight to recent prices, so it responds faster to new moves but can give more false signals.
What is a golden cross?
When a shorter moving average, typically the 50-period, crosses above a longer one, typically the 200-period. Many traders read it as a sign of a strengthening uptrend.
Comments
Log in to join the discussion. Comments follow the community guidelines.
Log in to commentLoading comments…