The Authority’ on Price Action Trading. In 2016, Nial won the Million Dollar Trader Competition. Identifying the bias of the Forex market at the beginning of each trading week is an important thing for every Forex bias trader to do.
It is really important to simply sit down on Sunday at some point and take 30 minutes or so to figure out in your mind what you think the market has the greatest potential to do during the upcoming week. The first thing you should do when identifying market bias is to take a look at the last one to two weeks’ worth of price action on the daily chart to get an idea of what price has happened recently. What condition has the market been in most recently? Is it trending, if so, which direction is the trend? The next thing you want to do is draw in the relevant support and resistance levels on the daily chart. You will generally only need to go back about 3 months worth of price data when doing this, but you may go back as much as 6 months if it looks like there are some relevant levels from back that far.