Premarket Prep GBPNZD 08122020

#pre­mar­ket­prep #trad­ing­forex #forex #FX #day­trad­ing #trad­inglifestyle #day­trader­life #GBPNZD 

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 33 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

• Yes­ter­day closed high­er break­ing the phase 3 range albeit not strongly
• D1 first touch of D1-C‑S 1.99731 (being very close to round num­ber of 2) today proved reactive
• New demand H4-C‑D 1.97912 formed through H4 Bull Engulf fol­lowed by messy price action to say the least indi­cat­ing pos­si­ble phase 1 or 3 still, H4-C‑D 1.98387 RBR was formed in the move up
• Mar­ket Profile
  • ADR exhaust­ed 90+%, 1268 out of 1326
  • M30 QHi lin­ing up with ADR 0.5
  • Price cur­rent­ly trad­ing above val­ue and range, will reassess at open
  • ASR
    • 1093

Com­pared against Week­ly Trad­ing Plan

• Mid MN, W1, and D1 swing
• W1 trad­ing above pre­vi­ous week’s body touch­ing VWAP
• H4, D1 trend is up, W1 is down

Sen­ti­ment — Slight­ly Bull­ish to neutral

• Sen­ti­ment is due to price being above value
• How­ev­er an open above val­ue could still war­rant (due to over­head sup­ply, ADR exhaus­tion and pos­si­ble Phase 3 on medi­um time frames)
  • Exhaust­ed move into sup­ply, failed auc­tion, reversal
  • Val­ue acceptance
  • Return to val­ue with price action con­fir­ma­tion long

Addi­tion­al notes

• An open above val­ue could warrant
  • Exhaust­ed move into sup­ply, failed auc­tion, reversal
  • Val­ue acceptance
  • Return to val­ue with price action con­fir­ma­tion long

ZOIs for Pos­si­ble Shorts

• D1-C‑S 1.99731

ZOIs for Pos­si­ble Long

• H4-C‑D 1.98387 RBR
• H4-C‑D 1.97912

Mind­ful Trading

• Slept okay

Focus Points for trad­ing development

• Week­ly Goal
  • Align with mar­ket narrative
  • Tak­ing a trade is not a priority 
• Risk Man­age­ment
  • 3 trades 1% risk
  • 2 con­sec­u­tive days of lack of sleep = NO TRADING