20210819 Premarket Prep DAX

19 Aug 20210819 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:

DAX 2021 Week 33 Trad­ing Plan

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

Com­pared against Week­ly Trad­ing Plan

• Price trad­ing deep­er into last week’s body

Non-con­jec­ture obser­va­tions of the market

• Price action
  • Price test­ed D1-C‑S 15966.51 and closed as a pos­si­ble base with longer sell­ing wick
  • Con­tin­u­a­tion to the sell off on H4 with a slight close below the over­all range and is trad­ing above H4-C‑D 15847.12 OLD, pos­si­ble H4 phase 4
• Trend: H4 Down, D1 Up, W1 Up
  • Pre­vail­ing trend: Trend is UP 2/3
• Mar­ket Profile
  • 3‑day brack­et­ing range with price cur­rent­ly below it
• Dai­ly Range
  • ADR: 10854
  • ASR: 9619
    • 2405
  • Day
    • Yes­ter­day’s High 15977.90
    • Yes­ter­day’s Low 15843.10

Sen­ti­ment

• LN open
  • Below Val­ue, Out­side Range
• Open dis­tance to value
  • 1.25xASR
• Nar­ra­tive
  • Large Imbal­ance. Gap down. Asia and FF trad­ed low­er so did LN IB. Price extend­ed below IB dur­ing C tak­ing out D1 demand. This could become a uni­di­rec­tion­al day although price is hit­ting D1 VWAP in UT. Favor­able play is a mean rever­sion but due to the exten­sion below more infor­ma­tion would be needed.
• Clar­i­ty (1–5, 5 being best)
  • 4
• Hypo 1
  • Sus­tained Auc­tion Down, IBR wide, pos­si­ble entry on weak­ness from with­in IBR to join the auc­tion, or late-sus­tained auc­tion entry
• Hypo 2
  •  Mean Rever­sion, Auc­tion Fade Long, vari­a­tion to Hypo 1,
• Hypo 3
  • Failed Auc­tion Long

Addi­tion­al notes

• Cap­i­tal Preser­va­tion Rule in effect

ZOIs for Pos­si­ble Shorts

• Not favored in equities
• D1-C‑S 15966.51

ZOIs for Pos­si­ble Long

• D1-C‑D 15547.73

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

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