Study Notes: Market Maker Primer – Essentials To Trading The Daily Bias

These are my study notes from ICT Market Maker Primer – Essentials To Trading The Daily Bias. I’m documenting them for personal review and to share my trading journey.

Original ICT video: https://www.youtube.com/watch?v=vJvcZGGeTZU

What is Daily Bias?

Daily bias is like predicting which direction the market will move today. Think of it like checking the weather forecast before you leave home. Will it rain (go down) or be sunny (go up)?

In trading, daily bias helps us guess if the price will close higher or lower than where it started the day.

Important Warning

This method is NOT perfect! Even the best traders make mistakes. Always practice with fake money (demo accounts) first. Never risk money you can’t afford to lose.

The Basic Idea

ICT (Inner Circle Trader) teaches us to look at daily charts like a roadmap. We find important turning points where prices bounced up or down before. These spots act like invisible walls that prices respect.

Step 1: Find the Key Levels

Look at your daily chart and mark these spots:

• High points where price went up but then came back down
• Low points where price went down but then came back up

These are like support and resistance levels. Think of them as floors and ceilings in a building.

Step 2: Watch What Happens Next

Here’s the magic question: Did price just break above an old high or below an old low?

If Price Breaks Above an Old High:

• The market might want to keep going up
• This suggests a bullish bias (expecting higher prices)
• Focus on the previous day’s high as your target

If Price Breaks Below an Old Low:

• The market might want to keep going down
• This suggests a bearish bias (expecting lower prices)
• Focus on the previous day’s low as your target

The Previous Day Rule

This is ICT’s simple daily bias system:

When You Think Market Will Go Up (Bullish):

• Look at yesterday’s candle
• The market should try to reach yesterday’s high
• Yesterday’s low should act like support (price shouldn’t go much below it)

When You Think Market Will Go Down (Bearish):

• Look at yesterday’s candle
• The market should try to reach yesterday’s low
• Yesterday’s high should act like resistance (price shouldn’t go much above it)

Warning Signs to Watch For

Sometimes the market tricks us. Watch out for these signals:

Outside Days

When today’s candle goes both above yesterday’s high AND below yesterday’s low, the market might be confused or about to change direction.

Both Levels Hit

If price hits both the previous day’s high AND low in the same day, this often means:

• The market is undecided
• A reversal might be coming soon
• Be extra careful with your trades

Simple Daily Routine

1. Before the market opens, look at yesterday’s high and low
2. Check your bigger picture analysis – are we bullish or bearish overall?
3. If bullish: Focus on yesterday’s high as target, yesterday’s low as support
4. If bearish: Focus on yesterday’s low as target, yesterday’s high as resistance
5. Watch the price action during the day to see if your bias is correct

Practice Makes Perfect

Start by doing this exercise every day:

1. Write down your daily bias prediction
2. Mark yesterday’s high and low on your chart
3. Watch what actually happens during the day
4. At the end of the day, note if you were right or wrong
5. Learn from both your wins and losses

Remember These Key Points

• Daily bias is just an educated guess, not a guarantee
• Always practice with demo money first
• The market can change direction quickly
• Look for obvious turning points, not every small wiggle
• Keep it simple – don’t overcomplicate things

Common Beginner Mistakes

• Trying to predict every single day perfectly
• Using real money before mastering the concept
• Ignoring the bigger picture context
• Not keeping track of your results
• Getting emotional when wrong

Final Thoughts

ICT’s daily bias method gives you a framework to think about market direction. It’s like having a compass when you’re hiking – it points you in the right direction, but you still need to watch where you’re stepping.

Start simple, practice daily, and gradually build your understanding. Remember, even experienced traders are wrong sometimes. The key is being right more often than you’re wrong and managing your risk properly.

Good luck, and happy trading!

Disclaimer: Trading involves substantial risk and is not suitable for all investors. Past performance does not guarantee future results. This content is for educational purposes only and should not be considered financial advice. Always consult with a qualified financial advisor before making trading decisions.