Premarket Prep Gold 20210602 - Bear Market Trader
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Premarket Prep Gold 20210602

Premarket Prep Gold 20210602

#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

  • 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
Click to Enlarge

Com­pared against Week­ly Trad­ing Plan

  • Price is trad­ing in last week’s body with­in W1 QHi and W1-C‑S 1890.750

Non-con­jec­ture obser­va­tions of the market

  • Price action
    • D1 Bear Engulf (although not the strongest) return­ing to D1-C‑D 1896.335 which is high in dis­tri­b­u­tion curve
    • H4 Bear Engulf giv­ing H4-C‑S 1911.084 with con­tin­u­a­tion down after one retest. H4 Bull­ish Inside Bar formed after react­ing off H4-C‑D 1892.728 OLD with no fol­low-through. Instead a DBD formation. 
  • Trend: H4 Up, D1 Up, W1 Up
    • Pre­vail­ing trend: Trend is UP
  • Mar­ket Profile
    • Flim­sy 2‑day over­lap­ping values
  • Dai­ly Range
    • ADR: 20668
    • ASR: 12447
      • 312
    • Day
      • Yes­ter­day’s High 1916.510
      • Yes­ter­day’s Low 1892.290


  • Loca­tions
    • H4-C‑S 1911.084 at VAH
  • Sen­ti­ment
    • LN open
      • Below Val­ue, Out­side Range
    • Open dis­tance to value
      • 0.64xASR
    • Pre­mar­ket
      • H4 DBD formed in pre­mar­ket clos­ing slight­ly above D1-C‑D 1896.335 High in Dis­tr. Curve
    • Nar­ra­tive
      • Large imbal­ance at the open below val­ue in line with a poten­tial con­tin­u­a­tion to the H4 DBD nar­ra­tive (although price has test­ed base which is not a good sign). Even though trad­ing above D1-C‑D 1896.335 High in Dis­tr. Curve since it is high in the dis­tri­b­u­tion curve it can be some­what negat­ed if there is a con­tin­u­a­tion down. Due to the large imbal­ance price could con­tin­ue fur­ther down before revers­ing in a mean rever­sion fashion. 
  • Clar­i­ty (1–5, 5 being best)
    • 3
  • Hypo 1 — Trend Continuation
    • Nar­ra­tive: H4 DBD nar­ra­tive with D1 demand in the way that is high in dis­tri­b­u­tion curve and price com­ing from a D1 Bear Engulf. 
    • Pre­ferred: Strong Bear­ish PA, Extend­ing below IB with a pos­si­ble low/medium ini­tia­tive activ­i­ty day sus­tained auc­tion down. 
    • Con: Trad­ing right into supply
  • Hypo 2 — Mean Reversion
    • Nar­ra­tive: open sen­ti­ment and, near­by demand, test­ed H4 base,
    • Pre­ferred: IB exten­sion down ful­fill­ing mean rever­sion cri­te­ria before form­ing a rever­sal for­ma­tion to failed auc­tion to Neu­tral Day.
    • Con: D1 Bear Engulf

Addi­tion­al notes

  • Cap­i­tal preser­va­tion rule in effect

ZOIs for Pos­si­ble Shorts

  • H4-C‑S 1911.084
  • W1-C‑S 1890.750

ZOIs for Pos­si­ble Long

  • D1-C‑D 1896.335 High in Dis­tr. Curve
  • H4-C‑D 1892.728 OLD

Mind­ful Trad­ing (lack of sleep?)

  • Feel­ing okay

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 Racing Enthusiast.

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