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Strategy & Testing

Bias

Intermediate

Also calleddirectional biasdaily biasHTF bias

Your working assumption of direction, usually from the higher timeframe; you trade with it and update it when structure says so.

In practice

A bias narrows the day to one direction. If the higher timeframe is rising and price is heading for a clear target above, the trader looks only for long setups and ignores shorts, which removes half of the possible mistakes.

It comes from evidence that can be written down: the trend, where liquidity sits, and where price is within its range.

What to watch for

A bias is a working assumption. Holding on to it after the market has broken the structure it was based on turns it into stubbornness.

Entrix Academy

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Entrix Academy is the trading course inside EntrixAlgo. It teaches the ideas in this glossary with interactive lessons, practice and a final exam. It is part of Pro, and a free account opens one lesson of your choice.

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