Bear Market Trader | Premarket Prep GBPNZD - London session
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Premarket Prep GBPNZD 20210609

Premarket Prep GBPNZD 20210609

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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

Click to Enlarge

Week­ly Focus Points

  • Min. 3 times work­ing out at home + manda­to­ry cardio
  • Trad­ing rules
    • Focus on tak­ing ONE trade a day. If I missed the first DTTZ then a trade needs to be tak­en on the 2nd DTTZ unless there is a high/medium ini­tia­tive activ­i­ty day.
    • 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
    • Buffer trades (prof­it tar­get >1R) are allowed and encouraged
    • 13 trades by the end of the month
  • No social media / mes­sen­ger apps / phone calls allowed dur­ing the trad­ing window

Com­pared against Week­ly Trad­ing Plan

  • Price trad­ing above last weeks body, with­in range at W1-C‑S 1.96876

Non-con­jec­ture obser­va­tions of the market

  • Price action
    • D1 Bull Engulf formed just below D1 Sup­ply giv­ing D1-C‑D 1.96248
    • H4 phase 2 cur­rent­ly trad­ing at H4 QHi, deep­er with­in D1 QHi, some demand cre­at­ed below H4 QHi
  • Trend: H4 Up, D1 Up, W1 Up
    • Pre­vail­ing trend: Trend is up
  • Mar­ket Profile
    • 2 over­lap­ping val­ues, no bracket
  • Dai­ly Range
    • ADR: 1118
    • ASR: 709
      • 18
    • Day
      • Yes­ter­day’s High 1.96761
      • Yes­ter­day’s Low 1.95904


  • Loca­tions
    • D1-C‑D 1.96248 at VAH, with­in range
  • Sen­ti­ment
    • LN open
      • Above Val­ue, Out­side Range
    • Open dis­tance to value
      • 0.9xASR
    • Pre­mar­ket
      • H4 closed high­er leav­ing a buy­ing wick
    • Nar­ra­tive
      • Large Imbal­ance at the open. Open­ing below H4 QHi might see a reac­tion although H4 look­ing it might want to climb high­er fol­low­ing the D1 Bull Engulf.
  • Clar­i­ty (1–5, 5 being best)
    • 4
  • Hypo 1 — Mean Reversion
    • Nar­ra­tive: Open sen­ti­ment, H4 QHi
    • Pre­ferred: Strong Bear­ish PA, IB exten­sion down, sus­tained auc­tion to val­ue edge (more like­ly just to LTF/H4 demand above value)
    • Con: Risky due to D1 bull engulf
  • Hypo 2 — Return to Value,
    • Nar­ra­tive: Open sen­ti­ment with D1 Bull Engulf narrative
    • Pre­ferred: Exten­sion down to strong bull­ish PA (pos­si­ble at LTF/H4 demand) at Val­ue edge to fade the auc­tion. Per­haps a failed auc­tion. If IB tra­vers­es low­er there might be a rever­sal from with­in IB.
    • Con: D1 Supply
  • Hypo 3 — Trend Continuation
    • Nar­ra­tive: D1 Bull Engulf, H4 phase 2, pos­si­ble tight IB, 
    • Pre­ferred: Strong Bull­ish PA with momen­tum exten­sion high­er, sus­tained auc­tion, close above Asia high tak­ing out M30 sup­ply, pos­si­ble late-sus­tained auc­tion entry
    • Con: Trad­ing right into W1/D1 Sup­ply, sum­mer time, 1.97000 right above, 

Addi­tion­al notes

  • Cap­i­tal Preser­va­tion Rule in effect

ZOIs for Pos­si­ble Shorts

  • H4-C‑S 1.97133
  • W1-C‑S 1.96876

ZOIs for Pos­si­ble Long

  • D1-C‑D 1.96248

Mind­ful Trad­ing (lack of sleep?)

  • Feel­ing a bit anx­ious still

Focus Points for trad­ing development

  • Month­ly Goals
    • No momen­tum trades on Non-Farm Fridays
    • Total of 13 trades by the end of the month
  • Week­ly Goal
    • Min. 3 times work­ing out at home + manda­to­ry cardio
  • Risk Man­age­ment
    • With­out forc­ing a trade: aim to take 1 trade a day, if pos­si­ble 2. 
    • Cap­i­tal Preser­va­tion dur­ing draw­down allows for 1R profit-taking
    • 2 con­sec­u­tive days of lack of sleep = NO TRADING


Day trader. Tech geek. Sim racer/Pilot.

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