Daily / Intraday Bias Trading - MT4/MT5 Resources

Daily/Intraday Bias Trading

This trading method/style comes from observations while trading the DHR line method.

I'm always interested in seeing how price ranges expand over the course of a day. We know that price movements are cyclical in nature. If extended daily photos were taken at the end of the day, a computer might classify those photos and determine the daily deviation at the beginning of the day.

This was just a concept but it led to the beginning of a trading method/style that I use and would benefit from the input of others.

The idea is to identify daily/intraday deviations/periods to help trade trends or counter-trends etc...

For day trading, I believe (others may disagree) that the daily open price is the control point. It is a single price for which the range extends asymmetrically during the day. Prices often, but not always, zigzag above and below the opening price throughout the day.

The second line used is the previous day's midpoint (pdm), forming D1 open to the pdm (opdm) box. Observations indicate that pdm is an important price. Place the indicator D1 Open Mid on the M15 chart and observe. See how the price moves from the open and hits the pdm approximately 80% of the day. See sometimes opdm boxes don't even have prices. This gives the category potential/provides a story for the potential direction of price action.

The previous day's highs and lows are not shown on the chart as they are only used to determine if a narrow opening occurred; this is easily seen. This is one of the categories of trade.

chart:
- M15 works best

The indicators used are:
- D1 Open Center
- 50 EMA, closing price
- PSAR H1 0.05, 0.1

As shown, trades are made based on price interaction with the opening line or the midline 50 EMA.
There are at least 6 types of transactions, and some transaction categories are better than others.

Each type of trading may be a separate trading method, but needs to be combined so that deviations may be known on a daily basis. I might be dreaming...

This diagram explains the concept better. If interested, further explanation/development or trade as is.



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