Premarket Prep GBPNZD 10262020

26 Oct Premarket Prep GBPNZD 10262020

#pre­mar­ket­prep #trad­ing­forex #forex #FX #day­trad­ing #trad­inglifestyle #day­trader­life #GBPNZD 

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:

GBPNZD Week 44 Trad­ing Plan

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

Week­ly Focus Points

• Only trade off M30/M15 for entries. M30, time-based, or look for exits after 2 hours (4 TPOs). Unless the entry is real­ly late.

Com­pared against Week­ly Trad­ing Plan

• Price trad­ing below MN C‑Sup again after hav­ing been test­ed mul­ti­ple times
• W1 con­sol­i­da­tion / pos­si­ble phase 3

Non-con­jec­ture obser­va­tions of the market

• Price action
  • H4 Bear Engulf cre­at­ed giv­ing H4-C‑S 1.94995 (round num­ber) right on top of demand and H4 QLo
  • Price is at H4 LKC in Range
• Mar­ket Profile
  • After 3 days of brack­et­ing Fri­day cre­at­ed VA below the brack­et­ing range. Larg­er time­frame is still in range though. 
  • ADR: 1569
  • ASR: 1095
    • 28
  • Day
    • Yes­ter­day’s High 1.96138
    • Yes­ter­day’s Low 1.94617
    • Cur­rent­ly below val­ue, out­side range

Sen­ti­ment

• Loca­tions
  • H4-C‑S 1.94995 at VAL
  • ADR 0.5 Low is right below D1-C‑D 1.94746
  • H4-C‑S 1.95845, ADR exhaus­tion and ADR 0.5 High at VAH
• Sen­ti­ment
  • LN open
    • Below val­ue, out­side range
  • Open dis­tance to value
    • 0.4xASR
  • Sen­ti­ment
    • Mod­er­ate imbal­ance. LN opened at D1-C‑D 1.94746 right above H4 QLo (plus H4 LKC in Range), but price action is still in line with mak­ing LLs after the H4 bear engulf was cre­at­ed at a round num­ber. No H4 demand has been cre­at­ed yet and trad­ing into D1 demand can be tricky. 
• Clar­i­ty (1–5, 5 being best)
  • 3
• Hypo 1 — Return to val­ue (short) / Trend continuation
  • H4 C‑Sup with LTF sup­ply in near-prox­im­i­ty to VAL (as well as below M30 VWAP in DT)
  • Pre­ferred: due to mod­er­ate imbal­ance I’d like to see PA con­fir­ma­tion of a con­tin­u­a­tion down fol­lowed by Momen­tum IB exten­sion down. Mon­i­tor for sus­tained auction.
• Hypo 2 — Swing Rever­sal (long)
  • D1 C‑dem reac­tive with close above H4 C‑sup
  • Pre­ferred: strong bull­ish PA with IB exten­sion up (momen­tum even bet­ter) but due to near-prox­im­i­ty to VA might be best to wait for VAA
  • Then with H4-C‑S 1.95845 at VAH as well as LTF sup­plies we could see a rever­sal here for a counter move

Addi­tion­al notes

• N.A.

ZOIs for Pos­si­ble Shorts

• H4-C‑S 1.95845
• H4-C‑S 1.94995

ZOIs for Pos­si­ble Long

• D1-C‑D 1.94746

Mind­ful Trading

• Woke up a lot

Focus Points for trad­ing development

• Month­ly Goals
  • Con­tin­ue track­ing my DRC track­ing sheet
  • Focus on my own progress and less on others
  • Feel­ing okay with NOT trading
  • Have ‘qui­eter’ weekends
• Week­ly Goal
  • Min. 3 times hit­ting the gym
• Trad­ing Rules
  • Trade from D and upwards unless a pos­si­ble momen­tum trade, val­ue accep­tance or otherwise. 
• Risk Man­age­ment
  • 3 trades 1% risk, 3rd trade only if first 2 worked out
  • Cap­i­tal Preser­va­tion dur­ing draw­down allows for 1R profit-taking
  • 2 con­sec­u­tive days of lack of sleep = NO TRADING

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