20210816 Premarket Prep DAX - Bear Market Trader
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20210816 Premarket Prep DAX

20210816 Premarket Prep DAX

#Fin­twit #Order­flow #day­trad­ing #day­trade #forex #FX #trade­plan #trad­ing­plan #trad­ing­forex #trad­inglifestyle #day­trader­life #index #indices #DAX #DE30Cash

This is my pre­mar­ket prep for today’s Euro­pean ses­sion for DAX. 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

Com­pared against Week­ly Trad­ing Plan

  • Price is trad­ing with­in last week’s body
Click to Enlarge

Non-con­jec­ture obser­va­tions of the market

  • Price action
    • Price pulled back a bit on the D1
    • H4 cre­at­ed some sup­ply giv­ing H4-C‑S 15964.09 through a Bear­ish Inside Bar and con­tin­u­a­tion down to H4 VWAP in UT
  • Trend: H4 Up, D1 Up, W1 Up
    • Pre­vail­ing trend: Trend is UP 3/3
  • Mar­ket Profile
    • Val­ues in UT with price cur­rent­ly trad­ing below
  • Dai­ly Range
    • ADR: 10588
    • ASR: 10412
      • 2603
    • Day
      • Yes­ter­day’s High 16030.76
      • Yes­ter­day’s Low 15925.69


  • LN open
    • Below Val­ue, Out­side Range
  • Open dis­tance to value
    • 0.91xASR
  • Nar­ra­tive
    • Large Imbal­ance at the open. Open below sen­ti­ment in an uptrend. Mean Rever­sion is most prob­a­ble although IBR already tra­versed 1.08xASR test­ing H4-C‑S 15964.09. After exhaust­ing ADR on the down­side. There could be some respon­sive activ­i­ty for the remain­der of the ses­sion. Although with an open below sen­ti­ment there could be a shift in larg­er time­frame sen­ti­ment if there is no push higher.
  • Clar­i­ty (1–5, 5 being best)
    • 5
  • Hypo 1
    • Weak­ness from with­in IBR, poten­tial mul­ti-time­frame swing lows for a long trade
  • Hypo 2
    • Mean Rever­sion, Sus­tained Auc­tion Up
  • Hypo 3
    • Failed Auc­tion Short, vari­a­tion to hypo 1
  • Hypo 4
    • Weak­ness from with­in IBR, short

Addi­tion­al notes

  • Cap­i­tal Preser­va­tion Rule in effect

ZOIs for Pos­si­ble Shorts

  • Not favored in equities
  • H4-C‑S 15964.09

ZOIs for Pos­si­ble Long

  • D1-C‑D 15756.47

Mind­ful Trad­ing (lack of sleep?)

  • Feel­ing okay

Focus Points for trad­ing development

  • Month­ly Goals
    • No momen­tum trades on Non-Farm Fridays
    • Total of 13 trades by the end of the month
  • Week­ly Goal
    • Min. 3 times work­ing out at home + manda­to­ry cardio
    • Use SL scal­ing in case the prof­it tar­get for the set­up doesn’t pro­vide 2R for exam­ple for FA or VAA setups
  • 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


Day trader. Tech geek. Sim Racing Enthusiast.

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