Premarket Prep GBPNZD 08202020

20 Aug Premarket Prep GBPNZD 08202020

#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 34 Trad­ing Plan

The pur­pose of a pre­mar­ket prep is to find setups with­in my week­ly trade plan bias.

Week­ly goal

• For­mu­late hypos in order of like­li­hood and track with actu­al devel­op­ment on the day

Non-con­jec­ture obser­va­tions of the market

• D1 closed as a bear engulf (with long buy­ing wick touch­ing D1-C‑D 1.98688 below) giv­ing new sup­ply at D1-C‑S 1.99961 duck­ing below the round num­ber of 2
  • No close below 200MA
• AS, LN down NY retraced (acti­vat­ing H4 Q points) through H4 RBR giv­ing demand H4-C‑D 1.99504
• H4 Inside bar test­ing D1-C‑S 1.99961 giv­ing H4-C‑D 1.99633 (with­in clutter)
• Mar­ket Profile
  • Yes­ter­day opened below val­ue inside range estab­lish­ing val­ue below the brack­et­ing range
  • ADR 1321
  • ASR 992
  • LN open with­in value
  • H4-C‑S 2.00550 at ADR 0.5 near ADR exhaus­tion with­in H4 QHi (above value)
  • D1-C‑D 1.98688 at ADR exhaus­tion and near H4 QLo (with­in value)
  • H4-C‑D 1.99504 right below VAH

Com­pared against Week­ly Trad­ing Plan

• Mid MN, W1, and D1 swing
• W1 closed above VWAP, cur­rent can­dle with­in last week’s body, Bear Engulf with long buy­ing wick formed
• H4, D1 trend is up, W1 is down

Sen­ti­ment — Neutral

• Sen­ti­ment
  • LN open with­in val­ue, larg­er time frame still look­ing bull­ish even though D1 formed a bear engulf there were a lot of buy­ers to absorb the selling
• Clar­i­ty (1–5, 5 being best)
  • 2
• Hypo 1
  • Price being with­in val­ue I am not look­ing to trade. Although hav­ing said that there might be the fol­low­ing hypos I might want to get involved with
• Hypo 2
  • LN open right at H4-C‑D 1.99504 below VAH may prove to be reac­tive but due to low­er time frame sup­ply ZOIs and Medi­um time frame c‑sup lines the prof­it tar­get would be less than desirable
    • I will mon­i­tor how the day plays out but not look­ing to force any­thing instead try and see what there is to learn.

Addi­tion­al notes

• N.A.

ZOIs for Pos­si­ble Shorts

• H4-C‑S 2.01105
• H4-C‑S 2.00550
• D1-C‑S 1.99961

ZOIs for Pos­si­ble Long

• H4-C‑D 1.99633 (with­in clutter)
• H4-C‑D 1.99504

Mind­ful Trading

• Slept light again

Focus Points for trad­ing development

• Week­ly Goal
  • For­mu­late hypos in order of like­li­hood and track with actu­al devel­op­ment on the day
  • Incor­po­rate pro­file day type
• Trad­ing Rules
  • If Open out­side of val­ue con­sid­er the place­ment in rela­tion to ADR 
  • Don’t take into con­sid­er­a­tion medi­um time frame c‑lines past 24 hours
• Risk Man­age­ment
  • 3 trades 1% risk, 3rd trade only if first 2 worked out
  • 2 con­sec­u­tive days of lack of sleep = NO TRADING