Premarket Prep GBPNZD 09252020

25 Sep Premarket Prep GBPNZD 09252020

#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 39 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 Pin­bar formed with long sell­ing wick clos­ing above VWAP
• D1 Phase 2 still in effect and no high­er time frame sup­plies near
• Pre­vi­ous H4 sup­ply tak­en out, pro­ceed­ed to cre­ate a new one slight­ly high­er through a strong inside bar with H4-C‑S 1.94803. No real move away from sup­ply, instead some consolidation.Price trad­ing between sup­ply and under­neath H4-C‑D 1.94262 BASE but no close below (yet)
• Mar­ket Profile
  • Pro­files in uptrend
  • ADR: 1553
  • ASR: 1435
    • 359
  • Day
    • Yes­ter­day’s High 1.95826
    • Yes­ter­day’s Low 1.94196
    • Cur­rent­ly price trad­ing below val­ue, out­side range

Com­pared against Week­ly Trad­ing Plan

• Trad­ing above W1 Demand and tried to reach above QLo and hit VWAP yesterday

Sen­ti­ment

• Loca­tions
  • H4-C‑S 1.94803 at with­in range below value 
  • H4-C‑D 1.94262 BASE at open and yesterday’s low
• Sen­ti­ment
  • LN open
    • Below Val­ue, out­side range
  • Open dis­tance to value
    • 0.7xASR
  • Sen­ti­ment
    • Mod­er­ate imbal­ance, could see a con­tin­u­a­tion down or move up. Price trad­ed down to H4-C‑D 1.94262 BASE but did not take it out yet so there might be grounds for a bounce here. Too far for a high like­li­hood of VA.
• Clar­i­ty (1–5, 5 being best)
  • 3
• Hypo 1 — Con­tin­u­a­tion down
  • Price action con­firm­ing a con­tin­u­a­tion to the H1 DBD
  • Pre­ferred: Momen­tum IB exten­sion down, sus­tained auction.
  • Con: against medium/high time frame sentiment
• Hypo 2 — Return to value
  • LTF sup­ply below val­ue with­in range plus H4-C‑S 1.94803 could be a bounce down.
  • Pre­ferred: late IB exten­sion up, price action con­fir­ma­tion rever­sal, failed auc­tion and quick move down.
• Hypo 3 — val­ue acceptance
  • Less like­ly due to LTF con­ges­tion and approx­i­ma­tion to val­ue edge. 

Addi­tion­al notes

• N.A.

ZOIs for Pos­si­ble Shorts

• H4-C‑S 1.94803

ZOIs for Pos­si­ble Long

• H4-C‑D 1.94262 BASE

Mind­ful Trading

• Feel­ing 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 
• 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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