Downward Bias - futures trading

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Downward Bias

Opposite of Upward Bias.

Bias refers to the fundamental judgment on which direction a market should go all things being equal. Many traders will formulate their bias upon economic indicators, trend, currency movements, and many other factors. In other words, a trader can have an upward bias on the oil markets, as they feel the price of crude will rise over time.


Biases are human tendencies that lead us to follow a particular quasi-logical path, or form a certain perspective based on predetermined mental notions and beliefs. When investors act on a bias, they do not explore the full issue and can be ignorant to evidence that contradicts their initial opinions. Avoiding cognitive biases allows investors to reach impartial decision based solely on available data.

Read more: Bias Definition | Investopedia
Created by  steve2222 , May 30th, 2016 at 01:29 PM
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