10 Jun Premarket Prep GBPNZD 06102020
This is my premarket prep for today’s European session for the Forex pair GBPNZD. 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.
Non-conjecture observations of the market
- Daily is showing a rejection of D1-C‑D 1.94437 through a bullish engulfing with D1-C‑D 1.94705 NEW
- Newly formed Demand ZOIs H4-C‑D 1.94244 NEW and RBR H4-C‑D 1.94740 NEW (coinciding with D1-C‑D 1.94705 NEW). Price continued higher and formed an evening star with H4-C‑S 1.95529 NEW
- Price has previously crossed over VWAP and currently VWAP is coinciding with H4-C‑D 1.94740 NEW and D1-C‑D 1.94705 NEW
- M30 showing a cross down of VWAP after uptrend finding demand M30-C‑D 1.95135 NEW just above previous demand
- Market Profile
- Price returned to VAH and is consolidating slight underneath it (currently within value and thus some balancing is going on, need further assessment at open)
Compared against Weekly Trading Plan
- Price continues to trade within D1/W1 QLo
- D1 bull engulf in line with price hitting Monthly VWAP level and Weekly Demand ZOI
Sentiment — Neutral
ZOIs for Possible Shorts
- H4-C‑S 1.95529 NEW
ZOIs for Possible Long
- W1-C‑D 1.95334
- H4-C‑D 1.94740 NEW
- D1-C‑D 1.94705 NEW
- D1-C‑D 1.94437
- H4-C‑D 1.94244 NEW
Focus Points for trading development
- Exit rules
- Option 1: Time-based stop
- Option 2: Target hit (SL (98/4) 25 pips + spread or x2 TP)
- NO OPTION 3
- UNLESS a trade is entered within 1 hour or half hour before the hard exit rule option 1
- Entry rules
- Cut off looking for trades at 11:15
- Entry on TPO break of IB
- Early entry with price action confirmation at
- H4 conterminous
- Open far from value, anticipating a move back to value using an engulfing + subsequent break of TPO
- Min. X2 R/R
- Use TPO confirmation or invalidation for directional decisions by looking for in conjunction with H4 conterminous lines
- TPO extension with a sustained move (BO from IB)
- TPO extension with failed auction (return to IB)
- How this direction of TPO extension relates to Value Area open sentiment
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