31 Jul Premarket Prep GBPNZD 07312020
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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
- After a prolonged downtrend price went in a range and has finally broken that range to the upside and price is trading above UKC for the first time
- No new daily supply zones created
- New H4 demand formed with H4-C‑D 1.94786 and H4-C‑D 1.94183 before reaching supply at H4-C‑S 1.96375
- H4 Bear Engulf at H4-C‑S 1.96375 with consequent pullback and immediate bull engulf back testing overhead supply again forming some new demand right underneath with H4-C‑D 1.96120
- Market Profile
- Clear uptrend however currently price is trading within value, will need to reassess at LN open
Compared against Weekly Trading Plan
- MN
- Monthly clean arrival at MN-C‑D 1.89696 (with underlying Q1 QLo) and saw some initial reaction
- Mid swing MN1 Q
- Testing MN VWAP after we broke down last month
- W1
- Consolidation with bull engulf last week W1-C‑D 1.92026, might be in process of a VWAP mean reversion
Sentiment — Neutral to Slightly Bearish
Additional notes
- N.A.
ZOIs for Possible Shorts
- H4-C‑S 1.96375
ZOIs for Possible Long
- H4-C‑D 1.96120
- H4-C‑D 1.94786
- H4-C‑D 1.94183
- D1-C‑D 1.91540
- H4-C‑D 1.92006
- H4-C‑D 1.92716
- W1-C‑D 1.92026
Mindful Trading
- I slept okay last night.
Focus Points for trading development
- Weekly Goal
- Have correct SL placement and position sizing
- Risk Management
- 3 allowed products
- Crude
- GBPNZD
- DAX
- 2 active opened positions — not on the same product
- 2% daily loss limit
- 3 trades allowed if ‘in the zone’
- Only trade off M30 candles or momentum plays
- After 4 losing trades in a week reduce TP to 1.5R but after 1R can consider taking profits
- 2 consecutive days of lack of sleep = NO TRADING
- 3 allowed products
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