Bear Market Trader | Premarket Prep GBPNZD - London session
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Premarket Prep GBPNZD 20210426

Premarket Prep GBPNZD 20210426

#fin­twit #order­flow #day­trad­ing #pre­mar­ket­prep #GBPNZD #Forex­trad­er #forex #FX #Forexlifestyle #day­trade #trade­plan #trad­ing­plan #trad­ing­forex #trad­inglifestyle #day­trader­life 

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

  • Min. 3 times hit­ting the gym + manda­to­ry cardio
  • Only trade the main account
  • Be mind­ful of DTTZs
  • Only price-action based exit rules (or if hit time stop comes earlier)
  • M15/M30 entries and exits at 1st DTTZ, M5 entries and exits at 2nd DTTZ

Com­pared against Week­ly Trad­ing Plan

  • W1 Phase 4 with a first reac­tion off W1 QLo the week pri­or last week which closed lower

Non-con­jec­ture obser­va­tions of the market

  • Price action
    • D1 DBD clos­ing with­in D1-C‑D 1.92900 trad­ing above D1 QLo
      • After a D1 QHi rejec­tion price tra­versed down to QLo and formed a Bull Engulf just above D1 QLo
    • H4 Bear Engulf at H4 VWAP in DT (giv­ing H4-C‑S 1.93080 althoughlow in the dis­tri­b­u­tion curve) with slight con­tin­u­a­tion down through DBD clos­ing with­in H4 QLo
  • Trend: H4 Up, D1 Down, W1 Up
    • Pre­vail­ing trend: Mixed trend
  • Mar­ket Profile
    • Even though val­ue are in DT there val­ue edges are slight­ly over­lap­ping hence there could be a slow-down in the move
  • Dai­ly Range
    • ADR: 1370
    • ASR: 1003
      • 25
    • Day
      • Yes­ter­day’s High 1.93600
      • Yes­ter­day’s Low 1.92700


  • Loca­tions
    • H4-C‑S 1.93470 above VAH with­in range at H4 VWAP in DT
    • D1-C‑D 1.92900 below VAL with­in range just above H4 QLo
    • H4-C‑D 1.92278 at ADR 0.5 low
  • Sen­ti­ment
    • LN open
      • Below Val­ue, With­in Range
    • Open dis­tance to value
      • 0.1xASR
    • Pre­mar­ket
      • H4 Bull Engulf reject­ing H4 QLo
    • Nar­ra­tive
      • Mod­er­ate Imbal­ance. Although due to near-prox­im­i­ty to Val­ue edge we can see an accep­tance of val­ue. How­ev­er, with a new­ly formed H4 sup­ply (although pos­si­ble low in dis­tri­b­u­tion curve) through Bear Engulf at H4 VWAP in DT this can be con­sid­ered risky. Safer would be a move down even though a H4 bull engulf was formed pre­mar­ket pos­si­ble reject­ing H4 QLo.
  • Clar­i­ty (1–5, 5 being best)
    • 2
  • Hypo 1 — Val­ue Acceptance
    • Nar­ra­tive: Open sen­ti­ment, H4 bull engulf reject­ing H4 QLo premarket
    • Pre­ferred: Ear­ly accep­tance and quick rota­tion, per­haps a failed auc­tion after H4 2nd chance entry
    • Con: H4 c‑sup at VAL
  • Hypo 2 — Return to Value
    • Nar­ra­tive: H4 c‑sup at VAL
    • Pre­ferred: Strong Bear­ish PA pos­si­bly fail­ing auc­tion oth­er­wise an exten­sion down with sus­tained auction
    • Con: Trad­ing right into D1 demand and new­ly formed H4 c‑dem
  • Hypo 3 — Respon­sive Activity
    • Nar­ra­tive: wedged between sup­ply and demand

Addi­tion­al notes

  • Cap­i­tal Preser­va­tion Rule in effect

ZOIs for Pos­si­ble Shorts

  • H4-C‑S 1.93470
  • H4-C‑S 1.93080

ZOIs for Pos­si­ble Long

  • D1-C‑D 1.92900
  • H4-C‑D 1.92782
  • H4-C‑D 1.92278

Mind­ful Trad­ing (lack of sleep?)

  • Feel­ing okay although slept a lit­tle less than normal

Focus Points for trad­ing development

  • Month­ly Goals
    • No momen­tum trades on Non-Farm Fridays
    • Feel­ing okay with NOT trading
    • Have ‘qui­eter’ weekends
  • Week­ly Goal
    • Min. 3 times hit­ting the gym + manda­to­ry cardio
    • Only trade the main account
    • Be mind­ful of DTTZs
    • Only price-action based exit rules (or hit time stop)
    • M15/M30 com­bi­na­tion at 1st DTTZ, M5 entries and exits at 2nd DTTZ
  • 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


Day trader. Tech geek. Sim Racing Enthusiast.

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