The bias system compares price action to a fixed price during a fixed time, to determine the target and/or range for the next 60-90 minute period. This outlook is called the “bias” and the period is called the “bias window”. The fixed price is a support or a resistance, and the resolution to its test is either active or passive. “Active” means the relevant level is exceeded, and “passive” means the level’s test held so probing it temporarily was “isolated”:
- An active bias has probed a support (or resistance), and then maintained the probe at the fixed time, to be rewarded by extending down to the next support (or up to the next resistance).
- A passive bias has failed to maintain the support (or resistance) probe at the fixed time, and its consequence is to reverse to the opposite resistance (or support).
A signal that triggers a target at the next higher resistance is labeled “Bias-up”, and at the next lower support is labeled “Bias-down”. A passive bias is labeled “Reverse bias”. One of these three bias signals will apply to the majority of bias windows, especially when a grace period is extended to situations that are still overlapping the signal and not yet resolving its test. But the exceptions have labels, too, and specific characteristics can often be expected during their windows.
Of course, not all signals are fulfilled in that window, and some may be partially fulfilled, or even rejected altogether. The three possible resolutions are that the bias can be fulfilled during its window, or left outstanding, or else invalidated. A bias window that lapses without fulfilling its bias will create a new outlook, determined by how the bias was left outstanding.