08 Dec Premarket Prep GBPNZD 12082020
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This is my premarket prep for today’s European session for 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. Unless there is a planned momentum trade.
Compared against Weekly Trading Plan
- Price trading within last week’s body.
Non-conjecture observations of the market
- Price action
- D1 Phase 1 continues with yesterday closing as Bear Engulf giving D1-C‑S 1.90483 but with underlying D1-C‑D 1.89128 being reactive and closing with a longer buying wick.
- Big Bull Engulf at H4-C‑D 1.88797 followed by consolidation
- Market Profile
- Yesterday traded below the previous day and created a wide value area. Possible volatility pick up. Might be repositioning to make a move. ASR has widened as well.
- ADR: 1371
- ASR: 931
- Yesterday’s High 1.90881
- Yesterday’s Low 1.88479
- ADR 0.5 low at VAH, nearby H4/D1 C‑dems
- ADR exhaustion low at VAL, nearby H4/D1 C‑dems
- ADR 0.5 high at D1 C‑sup
- ADR exhaustion high above D1 C‑sup
- LN open
- Above Value, Within Range
- Open distance to value
- 0.5 x ASR
- Moderate Imbalance. With H4/D1 C‑dems at value we could see a return to value. Although due to H4 showing potential for more downside we could see an acceptance with rotation through before any upside.
- LN open
- Clarity (1–5, 5 being best)
- Hypo 1 — Return to Value (with or without a VAA)
- Preferred: IB take out LTF demand, price action reversal at VAH. Monitor for either IB extension up or failed auction in case of extension down. Even with a value acceptance we could end of reversing. Monitor for TPO structure build up and reversal
- Con: value acceptance with follow-through
- Hypo 2 — Reactive Activity
- Hypo 3 — Trend Continuation
- Preferred: Strong Bullish price action, IB extension up (momentum), sustained auction.
- Brexit talks ongoing
ZOIs for Possible Shorts
- H4-C‑S 1.91275
- D1-C‑S 1.90483
- H4-C‑D 1.88797
ZOIs for Possible Long
- MN-C‑D 1.89659
- 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