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Bias signal rules

Each session can trigger two bias signals, the morning’s A.M. bias signal, and the afternoon’s P.M. bias signal. The A.M. price levels are calculated from price action through the prior session’s close. The P.M. price levels are calculated from price action that developed that morning until 3 minutes before noon ET. Flowcharts of the signal rules are linked here.

A.M. BIAS RULES

At 10:15, price that is…

  • above the bias-up signal level will trigger BIAS-UP, putting into play its bias-up target, while the bias-up signal contains the range’s lower-end.
  • below the bias-down signal level will trigger BIAS-DOWN, putting into play its bias-down target, while the bias-down signal contains the range’s upper-end.
  • between both signal and did not touch either signal will trigger NO-BIAS, requiring the window to be contained by its signals.
  • between both signals and touched at least one signal will trigger REVERSE-BIAS, putting into play an offsetting test of its counterpart, the opposite bias signal (A.M. only, not P.M.).
  • exceeding a bias target will trigger RENEWED-BIAS, putting into play an extended target.
  • touching or overlapping a signal within 3 minutes either way of 10:15 will trigger GRACE PERIOD, delaying the trigger until 10:30.

The 10:30 bar may resolve the grace period by…

  • exceeding the bias signal either way will trigger LATE BIAS-UP or LATE BIAS-DOWN, putting into play its bias target.
  • not exceeding the bias signal will trigger LATE NO-BIAS, requiring the window to be contained by its signals.
  • still overlapping the bias signal will trigger noN-BIAS, rendering the bias system moot for that window.

Or, the 10:30 bar can affect 10:15’s clean bias signal by…

  • reversing back within the bias signal will INVALIDATE the bias-up, or bias-down.
  • probing the bias signal that had not triggered will INVALIDATE the no-bias.

Through 11:30…

  • Bias signals should define either end of the NO-BIAS range.
  • Bias-up signal should define BIAS-UP range’s low.
  • Bias-down signal should define BIAS-DOWN range’s high.

At 11:30…

  • Probing prematurely beyond a bias signal during NO-BIAS will require its retrace, unless invalidated.
  • The bias containment or objective can be invalidated (see the invalidation rules below).
  • The bias target that was put into play becomes unfinished business if not met or invalidated.

INVALIDATION RULES…

  • Premature no-bias trending beyond a bias signal will not require being retraced if the bias window lapses beyond its bias target, too.
  • Reversing beyond the bias signal counterpart of the bias signal when the bias window lapses will invalidate the bias-up or bias-down signal — if the bias signal was not yet productive since triggering at 10:15.
  • Reversing beyond the bias target counterpart of the bias signal when the bias window lapses will invalidate the bias-up or bias-down signal — if the bias signal was productive since triggering at 10:15.

P.M. BIAS RULES

In addition to the trigger’s different timing at 1:20, afternoon bias rules differ from the morning in one way: Passive no-bias is just no-bias, unlike the A.M. setup that would form “reverse  bias” with an offsetting test in-play.

At 1:20, price that is…

  • above the bias-up signal level will trigger BIAS-UP, putting into play its bias-up target, while the bias-up signal contains the range’s lower-end.
  • below the bias-down signal level will trigger BIAS-DOWN, putting into play its bias-down target, while the bias-down signal contains the range’s upper-end.
  • between both signal and did not touch either signal will trigger NO-BIAS, requiring the window to be contained by its signals.
  • exceeding a bias target will trigger RENEWED-BIAS, putting into play an extended target.
  • touching or overlapping a signal within 3 minutes either way of 1:20 will trigger GRACE PERIOD, delaying the trigger until 1:30.

The 1:30 bar may resolve the grace period by…

  • exceeding the bias signal either way will trigger LATE BIAS-UP or LATE BIAS-DOWN, putting into play its bias target.
  • not exceeding the bias signal will trigger LATE NO-BIAS, requiring the window to be contained by its signals.
  • still overlapping the bias signal will trigger noN-BIAS, rendering the bias system moot for that window.

Or, the 10:30 bar can affect 1:20’s clean bias signal by…

  • reversing back within the bias signal will INVALIDATE the bias-up, or bias-down.
  • probing the bias signal that had not triggered will INVALIDATE the no-bias.

Through 2:30…

  • Bias signals should define either end of the NO-BIAS range.
  • Bias-up signal should define BIAS-UP range’s low.
  • Bias-down signal should define BIAS-DOWN range’s high.

At 2:30…

  • Probing prematurely beyond a bias signal during NO-BIAS will require its retrace, unless invalidated.
  • The bias containment or objective can be invalidated (see the invalidation rules below).
  • The bias target that was put into play becomes unfinished business if not met or invalidated.

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