Bear Market Trader | Premarket Prep DAX - London session
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Premarket Prep DAX 20210615

Premarket Prep DAX 20210615

#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

Click to Enlarge

Com­pared against Week­ly Trad­ing Plan

  • Price made a new All-time high trad­ing above last week body and range

Non-con­jec­ture obser­va­tions of the market

  • Price action
    • Weak D1 Bear Engulf
    • H4-C‑D 15708.62 through H4 Three Inside Up with con­tin­u­a­tion high­er into H4-C‑S 15729.73
  • Trend: H4 Up, D1 Up, W1 Up
    • Pre­vail­ing trend: Trend is UP 3/3
  • Mar­ket Profile
    • Val­ue Cre­at­ed above the brack­et­ing range
  • Dai­ly Range
    • ADR: 12276
    • ASR: 12115
      • 303
    • Day
      • Yes­ter­day’s High 15805.00 (same as yesterday’s range high)
      • Yes­ter­day’s Low 15670.40


  • Loca­tions
    • H4-C‑D 15708.62 at VAL
    • H4-C‑S 15729.73 with­in val­ue at PPOC
  • Sen­ti­ment
    • LN open
      • Above Val­ue, With­in Range
    • Open dis­tance to value
      • 0.05xASR
    • Pre­mar­ket
      • H4 closed deep­er with­in new­ly formed H4 Supply.
    • Nar­ra­tive
      • No Gap Up. Mod­er­ate imbal­ance with an open above val­ue with­in range and being equi­ties longs are def­i­nite­ly favored. How­ev­er, DAX seems to like to make its move dur­ing IB so I won­der if I can cap­i­tal­ize on any move here.
  • Clar­i­ty (1–5, 5 being best)
  • Hypo 1 — Trend Con­tin­u­a­tion / Sus­tained Auction
    • Nar­ra­tive: Weak D1 Bear Engulf, Trend is UP 3/3, price test­ed val­ue dur­ing IB
    • Pre­ferred: IB exten­sion up tak­ing out yesterday’s high and H4 sup­ply, pos­si­ble pop of H4 sup­ply cre­at­ing a LTF rever­sal pat­tern and test of IB for a poten­tial late-sus­tained auc­tion entry.
    • Con: Pos­si­ble wide IBR, move already hap­pened dur­ing IB
  • Hypo 2 — Failed Auction
    • Nar­ra­tive: Vari­a­tion to Hypo 1, 
    • Pre­ferred: price fails to find busi­ness above IB not tak­ing out yesterday’s high, PA rever­sal fail­ing auction.
    • Con: Trend is UP 3/3, equities
  • Hypo 3 — Auc­tion Fade
    • Nar­ra­tive: Vari­a­tion to Hypo 1
    • Pre­ferred: Price extends fur­ther, build TPO struc­ture, PA rever­sal back to IB edge.
    • Con: Trend is UP 3/3, equities
  • Hypo 4 — Val­ue Acceptance
    • Nar­ra­tive: open sentiment
    • Pre­ferred: Ear­ly accep­tance and quick rotation
    • Con: equi­ties!

Addi­tion­al notes

  • Cap­i­tal Preser­va­tion Rule in effect

ZOIs for Pos­si­ble Shorts

  • Not favored in equities
  • H4-C‑S 15729.73

ZOIs for Pos­si­ble Long

  • H4-C‑D 15708.62
  • D1-C‑D 15591.00

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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