Method
A one-sentence view of which way an instrument leans for the session, together with the condition that voids it — decided before the open.
A bias without an invalidation condition cannot be graded, which means it cannot be learned from. "Leaning long above 42,000" is a bias; "bullish" is an opinion.
Forming it before the session is what makes it checkable. Once price is moving, every chart looks like it was obviously going that way.
Also called: bias.
Taught in
Setting the Daily BiasThe Top-Down MethodDecide which way the Dow leans before the session opens — and why deciding beforehand is the whole point.
Also covered in that lesson
Related terms