01 Dec Premarket Prep GBPNZD 12012020
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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 trading within last week’s body
Non-conjecture observations of the market
- Price action
- D1 reactive after reaching D1-C‑D 1.89128
- Possible H4 Phase 1 and H4 Bull Engulf created during HK, although reached H4-C‑S 1.90363 (and H4 VWAP) it is reactive at the moment.
- Market Profile
- The ASR is too tight to trade. Price is trading above value after having below the bracketing range.
- ADR: 1196
- ASR: 828
- Yesterday’s High 1.92794
- Yesterday’s Low 1.91229
- H4-C‑S 1.90363 below ADR 0.5 High and LTF Supply
- MN-C‑D 1.89659 at VAH
- H4-C‑D 1.89269 at VAL and below ADR 0.5 Low above LTF demand, near
- LN open
- Above Value, Outside Range
- Open distance to value
- 0.x5 ASR
- Slightly large imbalance. Price crossed H4 VWAP in DT but there is still a lot of supply above so a reversal at H4 C‑Sup is more favored.
- LN open
- Clarity (1–5, 5 being best)
- Hypo 1 — Swing Reversal
- Preferred: PA reversal confirmed, IB extension down. Monitor for value acceptance.
- Hypo 2 — Continuation
- Preferred: close above H4 C‑Sup, IB extension up and sustained auction.
- Due to the ASR being too tight I am more about observing today’s session than actually trading. Although if I get in line with the flow of the market and feel confident enough to take a trade I will do so.
ZOIs for Possible Shorts
- H4-C‑S 1.90363
ZOIs for Possible Long
- MN-C‑D 1.89659
- H4-C‑D 1.89269
- D1-C‑D 1.89128
- Feeling okay.
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