03 Aug 20210803 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 reacted off W1 supply again and is trading slightly below the body of last week
Non-conjecture observations of the market
- Price action
- D1 Bear Engulf with long selling wick with a slight close within D1 demand.
- H4 Bull Engulf at D1 demand
- Trend: H4 Up, D1 Up, W1 Up
- Prevailing trend: Trend is UP 3/3
- Market Profile
- Price still within overall range but yesterday’s value is wider than usual
- Daily Range
- ADR: 13912
- ASR: 13187
- 3297
- Day
- Yesterday’s High 15704.40
- Yesterday’s Low 15510.10
Sentiment
- LN open
- Open within value
- Open distance to value
- N.A.
- Narrative
- Balancing market. ALthough trend is up there could be a push higher as price is also trading at the lower half of the overall range. There is a large LTF supply right above that can interfere with any sustained auction, also considering the open within value. Possible Failed Auction plays are preferred. Asia did trade higher and could push through London as well.
- Clarity (1–5, 5 being best)
- 4
- Hypo 1
- Failed Auction Short, nearby LTF supply, ADR 0.5 high
- Hypo 2
- Sustained Auction Up, risky, possible late sustained auction entry
- Hypo 3
- Auction Fade Short, variation to Hypo 1
- Hypo 4
- 3I-Day, variation to Hypo 1, Auction Fade long
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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