20210823 Premarket Prep DAX

23 Aug 20210823 Premarket Prep DAX

#Fin­twit #Order­flow #day­trad­ing #day­trade #forex #FX #trade­plan #trad­ing­plan #trad­ing­forex #trad­inglifestyle #day­trader­life #index #indices #DAX #DE30Cash

This is my pre­mar­ket prep for today’s Euro­pean ses­sion for DAX. This prep builds off of my week­ly trade plan I made here:

DAX 2021 Week 34 Trad­ing Plan

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 and W1-C‑S 15824.94

Non-con­jec­ture obser­va­tions of the market

• Price action
  • D1 demand giv­ing D1-C‑S 15824.94 and price reached D1-C‑S 15887.25 BASE
  • H4 Bull Engulf at W1-C‑D 15660.10 with con­tin­u­a­tion high­er acti­vat­ing swing
  • H4 QLo reject­ed with no arrival at H4 QHi (yet)
• Trend: H4 Down, D1 Up, W1 Up
  • Pre­vail­ing trend: Trend is UP 2/3
• Mar­ket Profile
  • 2‑day over­lap­ping val­ues cre­at­ed with price cur­rent­ly trad­ing above it
• Dai­ly Range
  • ADR: 13407
  • ASR: 11193
    • 2800
  • Day
    • Yes­ter­day’s High 15837.20
    • Yes­ter­day’s Low 15653.81

Sen­ti­ment

• LN open
  • Above Val­ue, Out­side Range
• Open dis­tance to value
  • 1.96xASR
• Nar­ra­tive
  • Huge Imbal­ance at the open. IB tra­versed down against Asia and FF pulling back to H4 VWAP. IBR 1.25xASR wide. Pos­si­bly devel­op­ing a H4 Bear Engulf with devel­op­ing H4 c‑sup near D1 Base lev­el there could be some weak­ness with­in IBR if the day con­tin­ues on respon­sive activity. 
• Clar­i­ty (1–5, 5 being best)
  • 4
• Hypo 1
  • Mean Rever­sion, sus­tained auc­tion down, although due to wide IBR prob­a­bly not likely
• Hypo 2
  • Failed Auc­tion Long, Pos­si­ble Strength from with­in IBR
• Hypo 3
  • Auc­tion Fade Long, vari­a­tion to Hypo 1
• Hypo 4
  • Weak­ness from with­in IBR, pull­back to devel­op­ing H4 c‑sup 

Addi­tion­al notes

• Cap­i­tal Preser­va­tion Rule in effect

ZOIs for Pos­si­ble Shorts

• Not favored in equities
• D1-C‑S 15966.51
• D1-C‑S 15887.25 BASE

ZOIs for Pos­si­ble Long

• D1-C‑D 15824.94
• W1-C‑D 15660.10

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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