Hi lurker
It can be useful to have a daily bias ie only long or only short based on a longer term indicator maybe a ema on the hourly or daily chart.
It is important though that you also put in a daily bias line that you don't contrevene!
The reason I say this is that I used to use a daily bias system if the ftse was above it's 8ema I'd only look to be long.
I also said that I'd only be long when the market was above the 21ema on the five min chart, that meant every day I knew when to be in or out of the market.
The danger for me was that come reversal days you might have made money plenty of times being long and hanging on, then all of a sudden you go long and it doesn't show a profit, you think "nevermind it'll come good", then if shows a greater loss, then you add again, it get's worse etc etc.
Next thing you know a month's money is gone in one reversal day.
I think it's a good system, or a good backdrop to a good system but as always it will be the trader not the system that undoes the good work in the end!
With a daily bias you can spend a lot of the day out of the market or even a whole day out of the market. This isn't a bad thing but it is something you have to be prepared for.
I am now flat on the FTSE and will remain so untill this afternoon's US direction becomes a little more clear to see.
Stephen
