Premarket Prep GBPNZD 10142020

#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 42 Trad­ing Plan

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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. 
• 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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