02 Aug 20210802 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 within last week’s body
Non-conjecture observations of the market
- Price action
- Price created demand and is trying move higher from D1-C‑D 15547.73 and took out D1 supply during IB.
- Trend: H4 Up, D1 Up, W1 Up
- Prevailing trend: Trend is UP
- Market Profile
- Some larger swings after a bracketing range but price is still within overall range.
- Daily Range
- ADR: 14520
- ASR: 14858
- 3715
- Day
- Yesterday’s High 15611.99
- Yesterday’s Low 15437.25
Sentiment
- LN open
- Above Value, Outside Range
- Open distance to value
- 1.06xASR
- Narrative
- Large imbalance / gap up. IB closed down with B forming a Bear Engulf. FF traded higher. C extended IB down before closing within IB Failing Auction. Although Asia and FF traded higher there could be a reversal coming down. IBR is 0.78xASR possible responsive activity.
- Clarity (1–5, 5 being best)
- 4
- Hypo 1
- Mean Reversion
- Hypo 2
- Return to Value, Auction Fade Long, variation to Hypo 1
- Hypo 3
- Failed Auction Long
- Hypo 4 — Less likely
- Value Acceptance, variation to Hypo 1
Additional notes
- Capital Preservation Rule in effect
ZOIs for Possible Shorts
- Not favored in equities
- W1-C‑S 15654.79
ZOIs for Possible Long
- D1-C‑D 15547.73
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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