14 Jun Premarket Prep DAX 20210614
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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 made a slight HH trading at the top of last week’s range/body
Non-conjecture observations of the market
- Price action
- Price took out D1 Supply and formed a spinning top with nearly no wicks
- H4 Bearish Hammer with price extended above H4 VWAp in DT
- Trend: H4 Up, D1 Up, W1 Up
- Prevailing trend: Trend is UP 3/3
- Market Profile
- 3‑day bracket
- Daily Range
- ADR: 12264
- ASR: 11493
- 287
- Day
- Yesterday’s High 15738.10
- Yesterday’s Low 15547.40
Sentiment
- Locations
- D1-C‑D 15591 within value at VAL
- M30 demand at VAH
- Sentiment
- LN open
- Above Value, Outside Range
- Open distance to value
- 0.5xASR
- Premarket
- H4 Bull Engulf with long buying wick
- Narrative
- Moderate to large imbalance at the open. H4 Created a bull engulf with long buying wick
- LN open
- Clarity (1–5, 5 being best)
- 3
- Hypo 1 — Trend Continuation
- Narrative: H4 Bull Engulf premarket. Equities tendency, D1 Supply taken out, open sentiment
- Preferred: IB extension up (momentum) sustained auction, exhausting ADR
- Con: all-time highs
- Hypo 2 — Return to Value
- Narrative: Same as Hypo 1
- Preferred: IB extension down to failed auction, LTF demand at VAH, possible test of value
- Con: If M30 closes within value
- Hypo 3 — Value Acceptance
- Narrative: Open sentiment, all-time high, Friday traded higher, ADR exhaustion at VAH,
- Preferred: Early acceptance and quick follow-through
- Con: Equities long-biased, D1 C‑dem at VAL
- Hypo 4 — Auction Fade
- Narrative: Variation to Hypo 1
- Preferred: Hypo 1 playing out, building structure and PA reversal to IB edge
- Con: shorting equities
Additional notes
- Capital Preservation Rule in effect
ZOIs for Possible Shorts
- Not favored in equities
ZOIs for Possible Long
- D1-C‑D 15591.00
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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