Action Bias is derived from our proprietary algorithms based on technical studies of prices of currency pairs. Action Bias is NOT intended for use as trading signals. Though it is by no means 100% accurate, it could be one of the best tools for a trader to reference to before deciding on your trades.
Here are some possible uses:
- Action Bias can be used to determine the primary direction to trade the currency pair. That is, one could only consider going long when Action Bias is on the upside and short only when Action Bias is on the downside.
- Action Bias can also be used to determine the exit of your trades. For example, one could consider exiting a long trade when Action Bias changes from up to neutral.
- Action Bias of different time frames can be used to reference each other. For example, an intraday trader could only consider going long when 4 hours and daily bias are NOT in conflict. That means, when 4 hours bias is up and daily bias is at least neutral.
- Action Bias of different pairs can be compared to have better understanding of the strength of a certain currency. For example, one could compare both the daily bias and weekly bias of all JPY crosses to see if there is particular underlying strength or weakness in Japanese Yen.
There are just too many possibilities. Explore and have fun.