Bear Market Trader | Premarket Prep GBPNZD - London session
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12162020 Premarket Prep GBPNZD

12162020 Premarket Prep GBPNZD

#fin­twit #order­flow #day­trad­ing pre­mar­ket­prep #Forex­trad­er #forex #FX #Forexlifestyle #day­trade #trade­plan #trad­ing­plan #trad­ing­forex #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:

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 test­ing W1-C‑S 1.89500 BASE (round number)

Non-con­jec­ture obser­va­tions of the market

  • Price action
    • D1 closed high­er at D1 VWAP / D1-C‑S 1.89847 (near round number)
    • Price slow­ing down (after tak­ing out demands) on H4 fol­lowed by a Bear Engulf giv­ing H4-C-SD 1.89314 (com­ing from H4 QHi) although shar­ing line with demand
    • H4 Closed as a Bull Engulf into H4 QHi
  • Mar­ket Profile
    • 2‑day brack­et
    • ADR: 1763
    • ASR: 1310
      • 33
    • Day
      • Yes­ter­day’s High 1.89987
      • Yes­ter­day’s Low 1.87947


  • Loca­tions
    • H4-C-SD 1.89314 near VAH
    • W1-C‑S 1.89500 BASE just below H4 QHi
  • Sen­ti­ment
    • LN open
      • Above Val­ue, Out­side Range
    • Open dis­tance to value
      • 0.6xASR
    • Sen­ti­ment
      • Slight­ly large imbal­ance. With H4 clos­ing as a Bull Engulf pre­mar­ket and a slight­ly large imbal­ance we could see a con­tin­u­a­tion to the move. This would be aligned with the D1 nar­ra­tive of a pos­si­ble VWAP in DT Break Out and the return to W1 base lev­el. Con is trad­ing right into D1 demand. 
  • Clar­i­ty (1–5, 5 being best)
    • 4
  • Hypo 1 — Trend Continuation
    • Pre­ferred: Tak­ing out H4 sup­ply at 1.90002 (round num­ber) dur­ing IB. IB exten­sion up (momen­tum), mon­i­tor for sus­tained auc­tion. Pos­si­ble Low/medium ini­tia­tive activ­i­ty day due to trad­ing right into over­head supply. 
  • Hypo 2 — Return to Value
    • Medi­um time frame demand at VAH
    • Pre­ferred: Test VAH dur­ing IB, price action rever­sal, either IB exten­sion up or a failed auc­tion down.
  • Hypo 3 — Swing Reversal
    • Pre­ferred: Pop the round num­ber (even though it would take out H4 sup­ply) fol­lowed by strong bear­ish price action. IB exten­sion down (momen­tum) and val­ue acceptance. 
  • Hypo 4 — Val­ue Acceptance
    • Pre­ferred: Ear­ly accep­tance, mon­i­tor for (quick) rotation

Addi­tion­al notes

  • Brex­it talks are still on

ZOIs for Pos­si­ble Shorts

  • D1-C‑S 1.89847 (near round number)
  • W1-C‑S 1.89500 BASE
  • H4-C-SD 1.89314

ZOIs for Pos­si­ble Long

  • H4-C‑D 1.87971

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


Day trader. Tech geek. Sim racer/Pilot.

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