20 Aug 20210820 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 week’s body and range
Non-conjecture observations of the market
- Price action
- D1 DBD with longer buying wick and price is currently trading in the lower range at D1 VWAP in UT
- H4 Bull Engulf formed at old H4 demand coinciding with H4 200MA with no follow-through. Instead an Evening Star closing within newly formed H4-C‑D 15767.70
- Trend: H4 Down, D1 Up, W1 Up
- Prevailing trend: Trend is UP 2/3
- Market Profile
- Wider value created below 3‑day bracketing range
- Daily Range
- ADR: 13024
- ASR: 10805
- 2700
- Day
- Yesterday’s High 15906.30
- Yesterday’s Low 15621.80
Sentiment
- LN open
- Above Value, Within Range
- Open distance to value
- 0.33xASR
- Narrative
- Moderate Imbalance. Price accepted value during A. Asia traded somewhat down but closed as a base with longer buying wick. FF traded Higher. Demand within value could prove a bouncing board at M30 QLo. Wide IBR might be cause for more responsive activity.
- Clarity (1–5, 5 being best)
- 3
- Hypo 1
- Return to Value, Strength from within IBR to go Long
- Hypo 2
- Value Acceptance
- Hypo 3
- Failed Auction Long
- Hypo 4
- Sustained Auction Short, preferably a late-sustained auction entry
Additional notes
- Capital Preservation Rule in effect
ZOIs for Possible Shorts
- Not favored in equities
- H4-C‑S 15786.96
ZOIs for Possible Long
- H4-C‑D 15767.70
- 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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