17 Dec Premarket Prep Gold 12172020
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This is my premarket prep for today’s European session for GOLD. 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 momentum play.
Compared against Weekly Trading Plan
- Price rejecting overhead supply forming an Inside bar with long selling wick and is currently developing a possible W1 RBR but there are still two days left so anything could happen.
- Price returned to MN-C‑S 1877.471
Non-conjecture observations of the market
- Price action
- D1 closed higher with clean arrival at D1-C‑S 1863.817
- H4 created H4-C‑D 1861.152 after testing H4 50MA/VWAP level leaving behind a big buying wick and consequent follow-through
- H4 Rally after a base formed premarket and open taking out D1-C‑S 1863.817
- Market Profile
- Values in UT
- ADR: 25399
- ASR: 15434
- Yesterday’s High 1865.67
- Yesterday’s Low 1844.69
- Open near ADR 0.5 High
- LN open
- Above Value, Outside Range
- Open distance to value
- 0.7 x ASR
- Slightly large imbalance. Due to Overhead demand been taking out at open we could see a continuation to the move. A return to MN-C‑S 1877.471 Base would point in the same direction. Next D1/W1 demand is 0.5xASR away. Although open was right at H4-C‑S 1878.126. If price manages to take out H4 demand at H4-C‑S 1884.814 END we would be near ADR exhaustion as well.
- LN open
- Clarity (1–5, 5 being best)
- Hypo 1 — Trend Continuation
- Preferred: Taking out H4 demand at H4-C‑S 1884.814 END. IB extension up (momentum) Sustained auction.
- Hypo 2 — Mean Reversion
- Price within D1/H4 QHi, Asia traded higher, nearing Mean Reversion criteria.
- Preferred: Price action reversal, IB extension down, sustained auction.
- Hypo 3 — Return to Value
- VAH at Yesterday’s high
- Preferred: IB exstension down, price action reversal, failed auction.
- Brexit talks are still on
ZOIs for Possible Shorts
- W1-C‑S 1888.729
- H4-C‑S 1878.126
ZOIs for Possible Long
- H4-C‑D 1861.152
- D1-C‑D 1837.559
- Feeling okay but going through something personal. Might decide not to trade unless really clear on a possible setup.
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