16 Aug 20210816 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 is trading within last week’s body
Non-conjecture observations of the market
- Price action
- Price pulled back a bit on the D1
- H4 created some supply giving H4-C‑S 15964.09 through a Bearish Inside Bar and continuation down to H4 VWAP in UT
- Trend: H4 Up, D1 Up, W1 Up
- Prevailing trend: Trend is UP 3/3
- Market Profile
- Values in UT with price currently trading below
- Daily Range
- ADR: 10588
- ASR: 10412
- 2603
- Day
- Yesterday’s High 16030.76
- Yesterday’s Low 15925.69
Sentiment
- LN open
- Below Value, Outside Range
- Open distance to value
- 0.91xASR
- Narrative
- Large Imbalance at the open. Open below sentiment in an uptrend. Mean Reversion is most probable although IBR already traversed 1.08xASR testing H4-C‑S 15964.09. After exhausting ADR on the downside. There could be some responsive activity for the remainder of the session. Although with an open below sentiment there could be a shift in larger timeframe sentiment if there is no push higher.
- Clarity (1–5, 5 being best)
- 5
- Hypo 1
- Weakness from within IBR, potential multi-timeframe swing lows for a long trade
- Hypo 2
- Mean Reversion, Sustained Auction Up
- Hypo 3
- Failed Auction Short, variation to hypo 1
- Hypo 4
- Weakness from within IBR, short
Additional notes
- Capital Preservation Rule in effect
ZOIs for Possible Shorts
- Not favored in equities
- H4-C‑S 15964.09
ZOIs for Possible Long
- D1-C‑D 15756.47
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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