Lesson 12 · Bootcamp Ep. 37

Daily Bias Pt. 2

Daily bias · higher-timeframe iFVG · SMT divergence · momentum · premium/discount · opening gaps

Core idea

This lesson extends Daily Bias Pt. 1 by showing how the creator uses 1H/4H FVG inversions, momentum and optional SMT divergence to form and update an intraday directional bias. A higher-timeframe gap is treated as a condition: respecting it supports the original direction; decisively closing through it supports the opposite direction.

Conditional hourly FVGHold → retain bullish biasFail → reassess bearishreaction from supportclose below support
Respecting the gap supports the original direction. A decisive body close through it supports revising the bias. Illustrative model, not a price forecast.

Bias is not a prediction to defend. Let price's reaction to an obvious higher-timeframe gap confirm, invalidate or reverse the working thesis.

Lesson map

Higher-timeframe inversion framework
  • The creator normally uses the 1H and 4H charts for bias instead of predicting the daily candle.
  • He looks primarily for obvious FVGs, iFVGs and SMT divergence.
  • An obvious higher-timeframe gap may initially act as support or resistance.
  • A clean lower-timeframe reaction from the gap supports continuation.
  • Stalling at the gap and then closing through it causes him to change bias.
  • He acknowledges that major events such as FOMC can make the daily path less predictable and may sweep both sides.
SMT plus FVG violation
  • The example compares ES and NQ.
  • ES takes a prior high while NQ fails to do so, producing bearish SMT divergence.
  • The divergence occurs around overnight and 8:30 news activity, so it is not automatically a live entry.
  • When price then fails to extend higher and later dumps through an obvious hourly FVG, the bearish bias gains stronger confirmation.
  • Missing the early SMT does not eliminate the later signal from the broken hourly gap.
Location determines gap quality
  • The creator prefers obvious higher-timeframe gaps located where the trade makes sense.
  • A bullish FVG violated in premium is more useful for a bearish bias than one violated deep in discount.
  • A bearish FVG violated in discount can support bullishness more logically than one broken after price is already extended upward.
  • Low-quality location can still produce movement, but it often worsens risk-to-reward and reliability.
Momentum and balanced price ranges
  • Large bodies, speed and the number of candles required to break a gap help measure conviction.
  • A powerful bullish candle blasting through bearish FVGs suggests the market is not respecting them as resistance.
  • A balanced price range (BPR) is described as an overlapping bullish and bearish FVG.
  • The creator considers BPRs strong support/resistance but simplifies them as iFVG structure for this lesson.
  • Conflicting 15M evidence can prevent an apparently bullish higher-timeframe setup from being trusted.
“Death candle” bearish example
  • A strong, fast bearish candle cuts through a major bullish FVG in premium.
  • The creator calls this a death candle.
  • The lack of a meaningful bounce signals that the gap is being inverted rather than respected.
  • Bias becomes bearish and the next significant low becomes the main objective.
  • Capturing the entire move is unnecessary; scaling partial profit and accepting break-even on the remainder can still fit the plan.
Extending beyond the first target
  • An iFVG initially points to the next high or low.
  • To project beyond that first target, the creator wants fresh bullish/bearish displacement or another gap above/below the level.
  • Wicks beyond a target without strong body confirmation are not enough.
  • Perfect equal highs beyond the first target may provide an exception by creating an obvious additional draw.
Opening gaps and repeated inversions
  • A New Week Opening Gap may form around the Sunday futures reopen and act as support/resistance.
  • New Day Opening Gaps can play a similar role on subsequent sessions.
  • The creator combines these levels with FVG inversion rather than treating them as standalone signals.
  • Repeated bullish closes through several bearish FVGs strengthen bullish bias because expected resistance fails repeatedly.
Fifteen-minute fallback and optional SMT
  • If the 1H and 4H charts offer no useful signal, the 15M chart can help with intraday bias.
  • SMT is useful confluence but is not mandatory on every setup.
  • The strength and context of the iFVG may be enough without divergence.
  • Screen time is required to judge when an inversion is meaningful.

Terms such as “death candle” and the creator's probability language are personal heuristics, not standardized or guaranteed signals. Higher-timeframe FVGs, SMT divergence and opening gaps can all fail, especially around major scheduled news.