04 Dec Premarket Prep GBPNZD 12042020
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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 Bull Engulf giving D1-C‑D 1.89833 after reacting off D1-C‑D 1.89128. Price still below D1 VWAP.
- Took out H4-C‑S 1.89951 and closed deep into H4-C‑S 1.90363 (unclean arrival) crossing H4 50MA after having formed some demand giving H4-C‑D 1.90216.
- Market Profile
- The ASR is too tight to trade. Price is trading above value after having below the bracketing range.
- ADR: 1287
- ASR: 840
- Yesterday’s High 1.90739
- Yesterday’s Low 1.88941
- D1-C‑D 1.89833 at VAL just above MN C‑dem
- H4-C‑D 1.90216 at VAH but high in distribution curve (price seems to be in Phase 2 might see continuation.
- LN open
- Above value, Outside Range
- Open distance to value
- 0.2 x ASR
- Slight imbalance. H4 closed as an inside bar retracing over 50% of the preceding bar. Newly formed H4 C‑dem might prove reactive being at VAH (although high in distribution curve) and we could form a H4 RBR. Going long would be safe if overhead supply gets taken out at 1.90783.
- LN open
- Clarity (1–5, 5 being best)
- Hypo 1 — Trend Continuation
- Near VAH + H4 C‑dem
- Preferred strong bullish pattern and IB taking out overhead supply followed by IB extension up (momentum). Sustained auction.
- Con: Friday profit-taking
- Hypo 2 — Value Acceptance
- Near proximity to value. Nearby H4 C‑Sup.
- Preferred: Early VAA.
- Con: LTF demand, mid h4 swing, D1 C‑dem at VAL
- ASR is slightly tight.
ZOIs for Possible Shorts
- H4-C‑S 1.90363
ZOIs for Possible Long
- D1-C‑D 1.89833
- MN-C‑D 1.89659
- H4-C‑D 1.89269
- D1-C‑D 1.89128
- H4-C‑D 1.88801
- Didn’t sleep well last night but 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