Premarket Prep GBPNZD 09112020

#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 37 Trad­ing Plan

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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 Phase 4 clos­ing with­in D1/H4 QLo arriv­ing at W1-C‑D 1.92067
• H4 con­sol­i­da­tion on top of W1-C‑D 1.92067
• LN and NY uni­di­rec­tion­al with 245% ADR
• Mar­ket Profile
  • ADR: 1528
  • ASR: 1131
  • Day
    • Yes­ter­day’s High 1.95221
    • Yes­ter­day’s Low 1.92123
    • Price with­in day range near day low
  • Loca­tions
    • Price trad­ing over 1xASR
    • D1-C‑D 1.91319 at ADR Exhaustion
    • ADR 0.5 right below W1-C‑D 1.92067 below H4 consolidation

Com­pared against Week­ly Trad­ing Plan

• D1 closed with­in W1 QLo

Sen­ti­ment

• Sen­ti­ment
  • LN open
    • Below val­ue, out­side range
  • Open dis­tance to value
    • 1.3xASR
  • Sen­ti­ment
    • With near­by demand, uni­di­rec­tion­al move yes­ter­day, Fri­day, we could see a poten­tial mean reversion
• Clar­i­ty (1–5, 5 being best)
  • 4
• Hypo 1 — Mean Reversion
  • Price action con­fir­ma­tion rever­sal (prob­a­bly no momen­tum trade), sus­tained auc­tion clos­ing above H4 QLo, per­haps hold on (or get back in) in case of val­ue acceptance
• Hypo 2 — Mean Reversion 
  • IB exten­sion down with price action con­firm­ing rever­sal and failed auc­tion form­ing neu­tral day
• Hypo 3 — Con­tin­u­a­tion to yesterday’s move
  • Momen­tum trade, sus­tained auc­tion, ADR exhaustion

Addi­tion­al notes

• N.A.

ZOIs for Pos­si­ble Shorts

• H4-C‑S 1.94717

ZOIs for Pos­si­ble Long

• W1-C‑D 1.92067
• D1-C‑D 1.91319

Mind­ful Trading

• Slept okay

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
  • FX with­in val­ue > DAX
• Risk Man­age­ment
  • 3 trades 1% risk, 3rd trade only if first 2 worked out
  • OK to take 1R when in DD
  • 2 con­sec­u­tive days of lack of sleep = NO TRADING

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