18 Aug Premarket Prep GBPNZD 08182020
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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
- D1 weak near-bear engulf
- Previous H4 supply taken out, near arrive to H4-C‑S 2.01105
- Price still above H4 VWAP and UKC
- Possible H4 Phase 3 in effect
- H4 Bull Engulf formed new demand at H4-C‑D 2.00218 just above previous demand of H4-C‑D 1.99926
- Market Profile
- ADR 1323
- ASR 937
- 2nd day bracketing which seems to be the theme since last week. 2 days bracketing followed by a move up.
- Currently price is trading within value but need to reassess at LN open
- ADR 0.5 right above VAH
- ADR exhaustion short yesterday’s low
- H4-C‑D 2.00218 at yesterday’s range low
- H4-C‑D 1.99557 at ADR exhaustion below
- H4-C‑S 2.01105 at ADR exhaustion above
Compared against Weekly Trading Plan
- Mid MN, W1, and D1 swing
- W1 closed above VWAP, current candle above last week’s body
- H4, D1 trend is up, W1 is down
Sentiment — Neutral for now
- If LN opens below value within range (or even within value) we could see a move down since medium time frame is in a range and we are at the top of the range
- Open below within range would be most preferred here with price action confirming a possible break down from H4-C‑D 2.00218 although due to underlying demand ZOIs this could be a potentially agonizingly slow and risky play short
- An exhaustion to the top is a better location for a possible short with H4-C‑S 2.01105 right there
- A failed auction would be preferred
- Although since larger timeframe is still bullish need to be careful.
- Due to H4 and D1 being up in trend the safer play would be at H4-C‑D 1.99557 coinciding with ADR exhaustion
Additional notes
- N.A.
ZOIs for Possible Shorts
- H4-C‑S 2.01105
ZOIs for Possible Long
- H4-C‑D 2.00218
- H4-C‑D 1.99938
- H4-C‑D 1.99557
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
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