24 Nov Premarket Prep GBPNZD 11242020
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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
Weekly Focus Points
- Don’t take trades where SL placement is suboptimal. Instead, reassess for a better entry if possible.
Compared against Weekly Trading Plan
- Price arrived at and is trading diving deeper into demand W1-C‑D 1.92065
Non-conjecture observations of the market
- Price action
- D1 Phase 1 / 3 and Asia today completely retracing yesterday’s Bull Engulf
- H4 Bear Engulf with long buying wick after previous supply gets taken out giving the same H4-C‑S 1.92348. Asia made an extended move down closing within D1-C‑D 1.91298.
- Market Profile
- VAs distancing but still within overall range. ADR has been exhausted to the downside at 140% now.
- ADR: 1172
- ASR: 916
- Yesterday’s High 1.92794
- Yesterday’s Low 1.91229
- D1-C‑D 1.91298 at ADR exhaustion low (already hit), new LTF demand formed
- H4-C‑S 1.92355 at VAH
- LN open
- Below Value, Outside Range
- Open distance to value
- Slightly large imbalance at the bottom of a ranging market. H4 closed as an Inside Bar at D1 C‑Dem. H1 consolidation with longer buying wicks with a bullish finisher (plus price overextended from VWAP in Range). With Asia moving down 140% ADR, plsu being at the bottom of the overall range as well as the imbalance in relation to profile I am more looking for bullish opportunities.
- LN open
- Clarity (1–5, 5 being best)
- Hypo 1 — Swing Reversal
- Preferred: Bullish PA and IB extension up, sustained auction. Perhaps a value acceptance.
- Hypo 2 — Return to Value
- Preferred: PA reversal confirmation at VAL (perhaps even a poke into value hitting H4 C‑Sup) before reversing. Failed auction.
- Hypo 3 — Trend Continuation (unlikely)
- Preferred: Taking out of LTF demands and making a swing low. Ib down and sustained auction.
ZOIs for Possible Shorts
- D1-C‑S 1.92947
- H4-C‑S 1.2348
ZOIs for Possible Long
- D1-C‑D 1.91298
- Feeling okay. Not looking to force any trades even though I have had only 5 trades this month. It is the last week of the month so unless something is super clear I am staying out.
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