Premarket Prep Gold 12032020

03 Dec Premarket Prep Gold 12032020

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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:

Gold – Week 49 Trad­ing Plan

The pur­pose of a pre­mar­ket prep is to find setups with­in my week­ly trade plan bias

Week­ly Focus Points

• Don’t take trades where SL place­ment is sub­op­ti­mal. Instead, reassess for a bet­ter entry if possible. 

Com­pared against Week­ly Trad­ing Plan

• Price trad­ing with­in last week’s body cur­rent­ly retraced more than 50% (2 days left in the candle)

Non-con­jec­ture obser­va­tions of the market

• Price action
  • D1 Phase 2 after strong bull engulf giv­ing D1-C‑D 1786.586
  • Just took out H4-C‑S 1835.600 before LN open
  • Mid H4 swing
• Mar­ket Profile
  • Pro­files in UT
  • ADR: 29148
  • ASR: 18600
    • 4650
  • Day
    • Yes­ter­day’s High 1832.367
    • Yes­ter­day’s Low 1807.455

Sen­ti­ment

• Loca­tions
  • ADR 0.5 High just above open
• Sen­ti­ment
  • LN open
    • Above Val­ue, Out­side Range
  • Open dis­tance to value
    • 0.8 xASR
  • Sen­ti­ment
    • Large imbal­ance (could mean high momen­tum since mean rever­sion cri­te­ria isn’t entire­ly ful­filled but still a pos­si­bil­i­ty). Due to price tak­ing out H4 sup­ply pre­mar­ket (even though a large imbal­ance at open) we could poten­tial­ly see a con­tin­u­a­tion to the move. HK did take prices high­er and we just arrived at ADR 0.5 high (although less sig­nif­i­cant in an imbal­ance mar­ket). We could see a last leg pre­ced­ing Friday’s poten­tial of profit-taking. 
• Clar­i­ty (1–5, 5 being best)
  • 4
• Hypo 1 — Trend Continuation
  • Pre­ferred: IB clos­ing as M30 RBR fol­lowed by IB exten­sion up. Sus­tained auc­tion. Mon­i­tor for ADR exhaustion.
• Hypo 2 — Return to Value
  • Price returns to VAH fol­lowed by rever­sal up and either a failed auc­tion with extend­ing high­er form­ing a Neu­tral Day or it hap­pens dur­ing IB
• Hypo 3 — Mean Reversion
  • Pre­ferred: Strong M30 Rever­sal pat­tern fol­lowed by IB exten­sion down. Mon­i­tor for sus­tained auc­tion and val­ue acceptance.

Addi­tion­al notes

• N.A.

ZOIs for Pos­si­ble Shorts

• No sig­nif­i­cant sup­plies overhead

ZOIs for Pos­si­ble Long

• H4-C‑D 1.1811.027

Mind­ful Trading

• Didn’t sleep too well last night but 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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