Premarket Prep GBPNZD 06052020

05 Jun Premarket Prep GBPNZD 06052020

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.

Non-con­jec­ture obser­va­tions of the market

• D1 con­tin­ued low­er deep­er into D1 QLo arriv­ing at D1-C‑D 1.94470
• H4 redis­tri­b­u­tion and DBD form­ing new sup­ply H4-C‑S 1.95351 NEW, no reac­tion from D1-C‑D 1.94470 (yet)
• Mar­ket Profile
  • M30 bear engulf at PVAL (LN & NY) dur­ing HK with con­se­quent LH bear engulf
  • HK ses­sion range exhausted

Com­pared against Week­ly Trad­ing Plan

• W1 Phase 4 still in effect for now but trad­ing with­in W1 demand ZOI

Sen­ti­ment — Slight­ly Bearish

ZOIs for Pos­si­ble Shorts

• H4-C‑S 1.95351 NEW

ZOIs for Pos­si­ble Long

• D1-C‑D 1.94470
• W1-C‑D 1.95345 @ H4-C‑S 1.95351 NEW

Focus Points for trad­ing development

• Exit rules
  • Option 1: Time-based stop
  • Option 2: Tar­get hit (SL (103/4) 26 pips + spread or x2 TP)
  • NO OPTION 3
    • UNLESS a trade is entered with­in 1 hour or half hour before the hard exit rule option 1
• Entry rules
  • Cut off look­ing for trades at 11:15
  • Entry on TPO break of IB
  • Ear­ly entry with price action con­fir­ma­tion at 
    • H4 con­ter­mi­nous
    • Open far from val­ue, antic­i­pat­ing a move back to val­ue using an engulf­ing + sub­se­quent break of TPO
  • Min. X2 R/R
  • Use TPO con­fir­ma­tion or inval­i­da­tion for direc­tion­al deci­sions by look­ing for in con­junc­tion with H4 con­ter­mi­nous lines
    • TPO exten­sion with a sus­tained move (BO from IB)
    • TPO exten­sion with failed auc­tion (return to IB)
    • How this direc­tion of TPO exten­sion relates to Val­ue Area open sentiment