22 Jun Premarket Prep GBPNZD 06222020
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
- Price testing H4/D1 C‑line 1.92553 and new H4 supply formed H4-C‑S 1.92891 NEW
- Market Profile
- Price within value
Compared against Weekly Trading Plan
- Opened below last week’s body but within range
Sentiment — Slightly Bearish
ZOIs for Possible Shorts
- H4-C‑S 1.92891 NEW
- H4-C‑S 1.93531
ZOIs for Possible Long
- H4-C‑D 1.92553
- D1-C‑D 1.93111
Focus Points for trading development
- Exit rules
- Option 1: Time-based stop
- Option 2: Target hit (SL 26 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 but only have 1 active trade on between the assets
- After 4 losing trades reduce TP to 1.5R but after 1R can consider taking profits
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