Lesson 12 · Bootcamp Ep. 37
Daily Bias Pt. 2
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.
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.