14 Oct Premarket Prep GBPNZD 10142020
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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
Weekly Focus Points
- Only trade off M30/M15 for entries. M30, time-based, or look for exits after 2 hours (4 TPOs). Unless the entry is really late.
- SL placement
- Add spread for shorts, subtract for longs
Compared against Weekly Trading Plan
- Price trading below last week’s body and range (below W1-C‑D 1.94836 Base) and back into W1 QLo
Non-conjecture observations of the market
- Price action
- Big D1 Bear Engulf (giving D1-C‑S 1.95562) closing below VWAP within D1-C‑D 1.94736
- H4 phase 4 reaching H4-C‑D 1.93720 (not reactive yet)
- Yesterday was unidirectional 180%
- Market Profile
- Bracketing
- ADR: 1464
- ASR: 1278
- 32
- Day
- Yesterday’s High 1.96752
- Yesterday’s Low 1.94290
- Currently below value, outside range, below previous day’s low about 1.2xASR away
Sentiment
- Locations
- H4-C‑D 1.93720 at ADR 0.5 within H4 QLo
- ADR exhaustion low below H4 demand
- Sentiment
- LN open
- Below value, outside range, below yesterday’s low
- Open distance to value
- 1.5xASR
- Sentiment
- Large imbalance hitting H4-C‑D 1.93720. If H4 demand gets taken out it would coincide with exhaustion of ADR and thus might see a continuation. Most likely there will be some kind of mean reversion.
- LN open
- Clarity (1–5, 5 being best)
- 4
- Hypo 1 — Mean Reversion (long)
- Large imbalance. H4-C‑D 1.93720.
- Preferred: price action reversal on M30, IB extension up (preferably momentum), sustained auction. No supplies on H4, although some LTF supplies in the way might see a slowdown.
- Hypo 2 — Trend Continuation (short)
- Possible D1 phase 2 continuation
- Preferred: Strong candles down or slight pullback price action confirming continuation. Possibility for a 2nd chance entry perhaps. IB extension down (preferably momentum) with sustained auction. Exhausting ADR with no reversal pattern. No real demands in the way.
Additional notes
- N.A.
ZOIs for Possible Shorts
- D1-C‑S 1.95562
ZOIs for Possible Long
- D1-C‑D 1.94736
- H4-C‑D 1.93720
Mindful Trading
- Feeling okay
Focus Points for trading development
- Monthly Goals
- Continue tracking my DRC tracking sheet
- Focus on my own progress and less on others
- Feeling okay with NOT trading
- Have ‘quieter’ weekends
- Weekly Goal
- Min. 3 times hitting the gym
- Trading Rules
- Trade from D and upwards unless a possible momentum trade, value acceptance or otherwise.
- Risk Management
- 3 trades 1% risk, 3rd trade only if first 2 worked out
- Capital Preservation during drawdown allows for 1R profit-taking
- 2 consecutive days of lack of sleep = NO TRADING
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