Introduction
Bias Isn’t a Feeling, It’s Structure + Liquidity + Timing
Every trading day begins with one crucial question:
“Which side of the market is Smart Money running today?”
Answer that, and your day becomes structured, disciplined, and aligned with institutional intent.
The Daily Bias Setup is a simple yet powerful Smart Money framework that helps traders identify the direction of delivery for the session.
By focusing on liquidity, structure, and timing, it eliminates noise and allows you to trade only with institutional flow, not against it.
What Is the Daily Bias?
Your daily bias is your directional framework, the side of the market you expect Smart Money to target for the session.
Every day, price engineers liquidity above or below the previous day’s range before delivering the real move.
The Daily Bias Setup helps you anticipate which side that delivery will occur, using a simple 3-step process:
- Mark the previous day’s high and low.
- Watch which side gets run first (the liquidity grab).
- Wait for structure confirmation, then trade in that direction until completion.
Step 1
Mark the Previous Day’s High and Low
Before each session begins, draw horizontal lines at the previous day’s high and low.
These levels are your liquidity pools, they show where retail traders have stops and where Smart Money will likely hunt before initiating delivery.
Think of these as “fuel tanks”:
- Above the high = Buy-side liquidity
- Below the low = Sell-side liquidity
Smart Money’s first move is usually to collect from one side of this range.
Step 2
Identify the Early Liquidity Grab
During the London or New York session, price typically sweeps one side of the previous day’s range.
This sweep is your directional clue.
- If price runs the previous day’s high and then breaks down → expect a bearish delivery.
- If price runs the previous day’s low and then reverses upward → expect a bullish delivery.
⚠️ Important: Don’t trade during the sweep.
That’s when retail traders are getting trapped.
Wait for structure confirmation before acting.
Step 3
Confirm With Structure Shift
Once the sweep occurs, look for a Break of Structure (BOS) or Change of Character (CHoCH) in the opposite direction of the sweep.
This structure shift signals that Smart Money has collected liquidity and is now delivering price toward the opposite side of the market.
Combine this confirmation with an Order Block (OB) or Fair Value Gap (FVG) for entry precision.
Example:
- Price sweeps yesterday’s high → forms bearish displacement → creates an FVG.
- Wait for retracement into the FVG or OB → enter short.
- Target the previous day’s low or next liquidity pool.
Example
Let’s say you’re trading XAU/USD (Gold):
- You mark the previous day’s high and low.
- During London open, price spikes above the previous day’s high, taking out buy-side liquidity.
- On the 5-minute chart, you see a CHoCH downward and a bearish FVG form.
- You enter short when price retraces into the FVG.
- Target the previous day’s low, that’s your delivery target.
This framework turns what looks like randomness into an intentional liquidity cycle.
Why This Strategy Works
The Daily Bias Setup works because it mirrors institutional behaviour:
- Smart Money hunts stops before they move the market.
- They collect liquidity early to fund the true direction.
- Structure confirms when their accumulation or distribution is complete.
Retail traders chase the sweep; professionals wait for the confirmation.
Trading Style
Best For: Intraday Traders
Works On: Forex • Indices • Gold
Sessions: London & New York
Confluences: CHoCH, Break of Structure (BOS), Fair Value Gaps (FVGs), Order Blocks (OBs), Liquidity Sweeps
Key Takeaways
✅ Mark previous day’s high and low before each session
✅ Watch for which side gets swept first, that’s your directional clue
✅ Confirm with structure before entering
✅ Trade in the direction of delivery until completion
Final Thoughts
The Daily Bias Setup gives traders something most lack daily clarity.
Instead of guessing direction, you read the market through liquidity and structure, just as Smart Money does.
Next time you open your charts, ask yourself: “Which side did price collect liquidity from, and where is it delivering next?”
That’s your bias. Trade it with conviction, structure, and precision.
Overview
Bias Isn’t a Feeling, It’s Structure + Liquidity + Timing
Every trading day has one main objective:
“Which side of the market is Smart Money running today?”
The Daily Bias Setup helps you find that answer fast.
By marking the previous day’s high and low, watching for the early liquidity grab, and confirming structure, you can follow the session’s true direction, not the fake one retail traders chase.
The Core Framework
1. Mark the Previous Day’s High & Low
These levels hold liquidity. Stops are stacked above and below.
2. Identify the Sweep
At London or NY open, watch which side gets taken first, that’s your directional clue.
- Sweep below the low → bullish bias.
- Sweep above the high → bearish bias.
3. Wait for Confirmation
Look for BOS or CHoCH in the opposite direction of the sweep.
Once confirmed, Smart Money is likely delivering to the other side.
4. Execute in Direction of Bias
Enter on a retrace into an OB or FVG aligned with the new structure.
Target the opposite side of the range or next liquidity pool.
Execution Tips
✅ Establish bias early but wait for structure confirmation.
✅ Works best during London & NY session overlaps.
✅ One directional bias per day, avoid flipping unless structure demands it.
Summary
- Mark highs and lows.
- Watch the liquidity grab.
- Confirm the shift.
- Trade in direction of delivery.
Once bias is set, everything else becomes simple.
Institutional Context
Smart Money sets daily direction through liquidity engineering.
Before each session, one side of the previous day’s range is cleared to create fuel for delivery.
The sweep defines intent, and structure confirms it.
Daily bias trading is about following that intent, not predicting it.
Execution Logic
- Pre-Market Prep: Mark previous day’s high/low.
- Liquidity Sweep: Identify which side clears first (London or NY open).
- Displacement: Wait for BOS in the opposite direction to validate bias.
- Entry: Refine inside FVG or OB on LTF (1m–5m).
- Delivery: Hold partials toward opposing range boundary or external liquidity.
Precision Notes
- Only one valid bias per day; treat reversals as separate models.
- Ideal confluence when sweep aligns with session open and imbalance fill.
- For advanced precision, layer SMT or volume divergence during confirmation.
Principle
Smart Money runs one side of the book each day. The sweep shows which one.