Premarket Prep GBPNZD 06192020

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 25 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

• Dai­ly (and week­ly) demand tak­en out and no new demand formed (yet)
• New H4 demand formed after a drop (cre­at­ing new sup­ply H4-C‑S 1.94642 NEW) fol­lowed by big inside bar fol­lowed by RBR cre­at­ing H4-C‑D 1.93270 NEW
• Mar­ket Profile
  • HK ses­sion range exhausted
  • Price cur­rent­ly with­in LN val­ue and val­ue is quite tall of 101 pips
  • H4-C‑D 1.93270 NEW just below PVAL

Com­pared against Week­ly Trad­ing Plan

• Week­ly demand tak­en out and extend­ed over last week’s range

Sen­ti­ment — Neutral

ZOIs for Pos­si­ble Shorts

• H4-C‑S 1.94642 NEW

ZOIs for Pos­si­ble Long

• H4-C‑D 1.93270 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 45 min before time-based stop
  • 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
• Risk Man­age­ment
  • Only take 2 trades a day
  • After 4 los­ing trades reduce TP to 1.5R but after 1R can con­sid­er tak­ing profits