I should stress one important point regarding then causality bias:
What we do NOT do is to see in which direction the bias SLIGHLTY points. That is not enough by any means.
In fact, if for example there are just a bit more shorties than longies and just a bit closer stops of these,
the price often goes in the opposite way!
Rather, we look for situation where the DM bias is STRONG, and then we consider to trade. SKIP the rest.
DM tolerance principle.
FF
What we do NOT do is to see in which direction the bias SLIGHLTY points. That is not enough by any means.
In fact, if for example there are just a bit more shorties than longies and just a bit closer stops of these,
the price often goes in the opposite way!
Rather, we look for situation where the DM bias is STRONG, and then we consider to trade. SKIP the rest.
DM tolerance principle.
FF
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