Premarket Prep Gold 20210222 - Bear Market Trader
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Premarket Prep Gold 20210222

Premarket Prep Gold 20210222

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

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

  • Only take trades accord­ing to a hypo unless there are mul­ti­ple con­di­tions met

Com­pared against Week­ly Trad­ing Plan

  • Price is trad­ing with­in W1 demand at W1 QLo / W1 50MA in UT (test­ed 4 times) in a squeeze with W1 VWAP
    • Final­ly broke below W1 50MA and is trad­ing below pos­si­bly form­ing a W1 DBD tak­ing out larg­er time­frame demand

Non-con­jec­ture obser­va­tions of the market

  • Price action
    • D1 Bull Engulf formed after tak­ing out larg­er time­frame demand and react­ing off D1-C‑D 1764.5
    • H4 con­sol­i­da­tion and strong bull­ish fin­ish­er with con­tin­u­a­tion higher
    • Pre­mar­ket: H4 closed with anoth­er rally
  • Trend
    • Mixed trend: H4 Up, D1 down, W1 up
  • Mar­ket Profile
    • Val­ue was cre­at­ed below a 2‑day brack­et with cur­rent­ly price trad­ing above the over­all bracket
    • ADR: 25271
    • ASR: 16799
      • 420
    • Day
      • Yes­ter­day’s High 1791.440
      • Yes­ter­day’s Low 1760.570


  • Loca­tions
    • Open at ADR 0.5 high
  • Sen­ti­ment
    • LN open
      • Above Val­ue, Out­side Range
    • Open dis­tance to value
      • 1.2xASR
    • Nar­ra­tive
      • Large imbal­ance. With larg­er time­frame tak­ing out demand we could see a bit of a bounce from these lev­els as a pull­back. Due to the open sen­ti­ment we could see a mean rever­sion to the D1 Bull Engulf formed on Friday.
  • Clar­i­ty (1–5, 5 being best)
    • 3
  • Hypo 1 — Mean Reversion
    • Nar­ra­tive: Larg­er time frame bear­ish sen­ti­ment with open sentiment.
    • Pre­ferred: Bear­ish Price action tak­ing out LTF demand con­firm­ing a reversal
    • Con: New­ly formed D1-C‑D 1778
  • Hypo 2 — Return to Value
    • Nar­ra­tive: D1-C‑D 1778 at VAH
    • Pre­ferred: Price extend­ing down fol­lowed by bull­ish price action fail­ing auction
  • Hypo 3 — Trend Continuation
    • Nar­ra­tive: D1 Bull Engulf
    • Pre­ferred: Ear­ly Bull­ish price action with exten­sion on momen­tum fol­lowed by a sus­tained auction.
    • Con: Opent sentiment

Addi­tion­al notes

  • N.A.

ZOIs for Pos­si­ble Shorts

  • W1-C‑S 1847.890
  • W1-C‑S 1818.073

ZOIs for Pos­si­ble Long

  • D1-C‑D 1787
  • D1-C‑D 1764.5

Mind­ful Trading

  • 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


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