21 Jul 20210721 Premarket Prep DAX
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This is my premarket prep for today’s European session for DAX. This prep builds off of my weekly trade plan I made here:
The purpose of a premarket prep is to find setups within my weekly trade plan bias
Compared against Weekly Trading Plan
- Price trading below last month’s body and range
- W1 Bear Engulf with continuation (although no close yet) and price is currently trading within W1 demand at W1 VWAP in UT.
Non-conjecture observations of the market
- Price action
- D1 Phase 4 followed by an Inside Bar reacting off D1-C‑D 15127.39
- H4 Bull Engulf reacting off D1 demand closing above H4 QLo followed by a consolidation and break down giving H4-C‑S 15261.58 at H4 VWAP in DT but did not close within newly formed H4 demand.
- Trend: H4 Down, D1 Up, W1 Up
- Prevailing trend: Trend is UP 2/3
- Market Profile
- 2‑day bracketing indicating a slowdown
- Daily Range
- ADR: 19708
- ASR: 15894
- 3975
- Day
- Yesterday’s High 15299.70
- Yesterday’s Low 15092.50
Sentiment
- LN open
- Above Value, Within Range
- Open distance to value
- 0.22xASR
- Narrative
- Moderate Imbalance. D1 Q points got activated and currently is trading mid swing. Possible transition to W1 Phase 4 so H4/D1 QLo could prove a mere road block. Asia closed as a Bullish Inside Bar or possibly a consolidation at H4 VWAP in DT.
- Clarity (1–5, 5 being best)
- 4
- Hypo 1
- Value Acceptance, sustained auction down
- Hypo 2
- VAH Reversal, possible Failed Auction Long
- Hypo 3
- Auction Fade Long, variation to Hypo 1
- Hypo 4
- Auction Fade Short, variation to Hypo 2
Additional notes
- Capital Preservation Rule in effect
ZOIs for Possible Shorts
- Not favored in equities
- W1-C‑S 15654.79
- H4-C‑S 15261.58
ZOIs for Possible Long
- W1-C‑D 15401.45
- D1-C‑D 15127.39
Mindful Trading (lack of sleep?)
- Feeling okay
Focus Points for trading development
- Monthly Goals
- No momentum trades on Non-Farm Fridays
- Total of 13 trades by the end of the month
- Weekly Goal
- Min. 3 times working out at home + mandatory cardio
- Use SL scaling in case the profit target for the setup doesn’t provide 2R for example for FA or VAA setups
- Risk Management
- Without forcing a trade: aim to take 1 trade a day, if possible 2.
- Capital Preservation during drawdown allows for 1R profit-taking
- 2 consecutive days of lack of sleep = NO TRADING
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