Premarket Prep GBPNZD 06182020 - Bear Market Trader

Premarket Prep GBPNZD 06182020

Premarket Prep GBPNZD 06182020

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

  • Dai­ly con­sol­i­da­tion still in effect with yes­ter­day try­ing to break down how­ev­er pushed back into the fold (trad­ing between D1-C‑D 1.9447 and D1-C‑S 1.95228)
  • H4 formed a new demand at H4-C‑D 1.93970 NEW with inside bar and push back up to new­ly formed H4-C‑S 1.94828 NEW
  • Mar­ket Profile
    • Price cur­rent­ly above val­ue but will need to reassess at open since we are at H4-C‑S 1.94828 NEW

Com­pared against Week­ly Trad­ing Plan

  • Still have today and tomor­row to go but could poten­tial­ly be a con­sol­i­da­tion here as well. Price trad­ing with­in last week’s range.

Sen­ti­ment — Neutral

ZOIs for Pos­si­ble Shorts

  • D1-C‑S 1.95228
  • H4-C‑S 1.94828 NEW
  • H4-C‑S 1.95955 NEW

ZOIs for Pos­si­ble Long

  • W1-C‑D 1.95392
  • D1-C‑D 1.9447
  • H4-C‑D 1.93970 NEW

Focus Points for trad­ing development

  • Exit rules
    • Option 1: Time-based stop
    • Option 2: Tar­get hit (SL (98/4) 25 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 45 min before time-based stop
    • 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
  • Risk Man­age­ment
    • Only take 2 trades a day
    • After 4 los­ing trades reduce TP to 1.5R but after 1R can con­sid­er tak­ing profits

Day trader. Tech geek. Sim racer/Pilot.

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