14 Jan 20220114 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 above last month’s body and made a HH now trading within range
- Last week closed as an inverted hammer currently trading above its body but still within range although price reached for W1-C‑D 15685.89 and is currently trading below W1 supply and started reacting
- Price is currently trading within last week’s body
Sentiment
- LN open
- 0.39xASR Below Value, Outside Range, Moderate to Large Imbalance
- Market Profile
- 2 overlapping values
- Narrative
- D1 Bear Engulf closing below D1 QHi giving D1-C‑S 15997.29 although price did not close within the previous demand formed by a D1 Bull Engulf
- H4 QHi rejected and price is trading mid swing
- H4 Bullish Inside Bar at D1 demand has been formed with a longer selling wick, although with a longer selling wick
- 0.66xASR wide IBR, possible responsive activity
- Trend is UP 3/3
- Clarity (1–5, 5 being best)
- 3
- Hypo 1
- Long
- Strength From Within IBR, monitor for value acceptance, risky due to D1 supply within value, D1 demand nearby
- Hypo 2
- Short
- Return to Value, VAL reversal, possible Failed Auction
- Hypo 3
- Short
- Weakness From Within IBR
- Hypo 4
- Short
- Auction Fade Short
Additional notes
- N.A.
ZOIs for Possible Shorts
- Not favored in equities
- W1-C‑S 16102.51
- D1-C‑S 15997.29
ZOIs for Possible Long
- D1-C‑D 15907.25
- W1-C‑D 15685.89
Mindful Trading (lack of sleep?)
- Didn’t sleep well, will need to be careful. Only trade after C TPO (if any)
Focus Points for trading development
- Monthly Goals
- No momentum trades on Non-Farm Fridays
- Total of 15 trades by the end of the month, can take 2 a day (not in the same product at the same time)
- No early exits, either hit SL or 2R target
- Use SL scaling in case the profit target for the setup doesn’t provide 2R for example for FA or VAA setups
- Process
- Keep trade review comments short
- Risk Management
- 2 consecutive days of lack of sleep = NO TRADING
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