Premarket Prep GBPNZD 06122020

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:

GBPNZD – Week 24 Trad­ing Plan

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The pur­pose of a pre­mar­ket prep is to find setups with­in my week­ly trade plan bias.

Non-con­jec­ture obser­va­tions of the market

• RBR on the dai­ly with con­ter­mi­nous D1-C‑D 1.95562 NEW RBR after the Bull Engulf rejec­tion demand
• New­ly formed H4 Demand at H4-C‑D 1.95151 NEW with ral­ly to new H4 Sup­ply formed below an exist­ing one with con­ter­mi­nous H4-C‑S 1.95948 NEW (coin­cid­ing with H4 QHi) fol­lowed by rejec­tion through DBD
• Mar­ket Profile 
  • Price returned to val­ue with M30 close inside dur­ing HK. Need fur­ther assess­ment at LN open

Com­pared against Week­ly Trad­ing Plan

• Price made a move away from W1-C‑D 1.95334

Sen­ti­ment — Slight­ly Bullish

ZOIs for Pos­si­ble Shorts

• H4-C‑S 1.95948 NEW
• H4-C‑S 1.96375

ZOIs for Pos­si­ble Long

• D1-C‑D 1.95562 NEW RBR
• H4 Demand at H4-C‑D 1.95151 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