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Action Bias is derived from our proprietary algorithms based on technical studies of prices of commodity futures. Action Bias is NOT intended for use as trading signals. Even 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 commodity. 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 frame can be used to reference each other. For example, one could only consider going long when daily and weekly time bias are NOT in conflict. That means, when daily bias is up and short term bias is at least neutral.
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