21 May Premarket Prep GBPNZD 20210521
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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
- Min. 3 times hitting the gym + mandatory cardio
- Trading rules
- 1 trade per day minimum (unless I missed the 1st DTTZ and the 2nd DTTZ is a continuation to the first)
- 1R targets allowed if conditions are less than optimal (buffer trades allow for 0.5–0.8R profit-taking)
- M15/M30 entries and exits at 1st DTTZ, M5 entries and exits at 2nd DTTZ
- Only price-action based exit rules (or if hit time stop comes earlier)
- Otherwise a Bart Simpson exercise
- 1 trade per day minimum (unless I missed the 1st DTTZ and the 2nd DTTZ is a continuation to the first)
Compared against Weekly Trading Plan
- Price made a HH trading within W1 Supply
Non-conjecture observations of the market
- Price action
- D1 pulled back towards D1-C‑D 1.96000 BASE level but closed higher forming a Hammer deeper within D1 Supply and D1 QHi then proceeded to take out D1 Supply
- H4 Bull Engulf giving H4-C‑D 1.96738 with RBR closing within old H4 supply that was tested multiple times
- Trading deeper within H4 QHi
- Trend: H4 Up, D1 Down, W1 Up
- Prevailing trend: Mixed Trend
- Market Profile
- 2‑day overlapping values created above the previous overall range
- Daily Range
- ADR: 1218
- ASR: 904
- 23
- Day
- Yesterday’s High 1.94221
- Yesterday’s Low 1.96131
Sentiment
- Locations
- H4-C‑D 1.96738 at VAH
- Sentiment
- LN open
- Above Value, Outside Range
- Open distance to value
- 0.8xASR
- Premarket
- H4 closed making HHs taking out D1 Supply
- Narrative
- Premarket: Although trading right into W1/MN supply price action seems to support a continuation higher for the moment. D1 Supply got taken out during Asia is supporting this thesis.
- Large Imbalance. With price taking out D1 Supply there could be a continuation higher as this would be along the larger time frame bullish sentiment. Possible continuation to D1 RBR. With H4-C‑D 1.96738 at VAH that would be the safest trade location although with the open sentiment 0.8xASR above value outside range there could be a mean reversion first.
- LN open
- Clarity (1–5, 5 being best)
- 4
- Hypo 1 — Trend Continuation / Return to Value
- Narrative: D1 Bullish sentiment
- Preferred: Strong Bullish PA with IB extension up on momentum, otherwise a move to LTF demand above VAH to failed auction (in case of an extension down)
- Con: trading within W1 Supply
- Hypo 2 — Mean Reversion
- Narrative: Open sentiment, W1 supply, Asia traded higher
- Preferred: Strong Bearish PA with IB extension down and sustained auction.
- Con: D1 Bullish sentiment
Additional notes
- Capital Preservation Rule in effect
ZOIs for Possible Shorts
- MN-C‑S 1.97330
- W1-C‑S 1.96840
ZOIs for Possible Long
- H4-C‑D 1.96738
- D1-C‑D 1.96000 BASE
Mindful Trading (lack of sleep?)
- Feeling okay
Focus Points for trading development
- Monthly Goals
- No momentum trades on Non-Farm Fridays
- Feeling okay with NOT trading
- Have ‘quieter’ weekends
- Weekly Goal
- Min. 3 times hitting the gym + mandatory cardio
- Trading rules
- M15/M30 entries and exits at 1st DTTZ, M5 entries and exits at 2nd DTTZ
- Only price-action based exit rules (or if hit time stop comes earlier)
- Otherwise a Bart Simpson exercise
- Risk Management
- Without forcing a trade: aim to take 1 trade a day, if possible 2.
- Capital Preservation during drawdown allows for 1R profit-taking
- 2 consecutive days of lack of sleep = NO TRADING
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