One of my pre-market preperation is to figure out market context. I spend about 30-60 minutes reading my trading charts pre-market every day. I open TradeStation and start reading @ES/@YM/@NQ charts in 1220T, Daily, 30m charts to understand how market reacted in the last few days, where the new highs/lows were made, how it closed in the last few days. This preparation is part of my visualization technique and focus on various price action elements.
Pivots play very crucial role in the markets. Knowing when/where/how they act/react adds to traders knowledge/success.
Pre-market, I watch Two type of Pivots: Floor Pivots and Fib. Zone Pivots.
Fib. Zone Pivots concept was popularized by Robert Krausz and was also written by J.T. Jackson in his book. Eventhough their research involved of knowing various statistical trading zones concepts for various times of the day, I limit myself to just using Pivots as key support and resistance areas. I think knowing where the extreme Fib. Zone Pivots exist will be greatly helpful in trading.
In the following chart, I plotted Fib. Zone Pivots on @ES 30minute chart and highlighted the areas where each day how price bounced off. Fib. Zone Pivots indicator automatically plots these levels from yesterday's Open,High,Low and Close and the Pivots, FZPivot Bands remain all day.
For example On Jan. 27th, Price bounced off FZ62% level (1082) to rise to 1103 level following day. On Friday, Jan 29, the Globex Low was made within the FZBand (1070.25-1066.75) and price returned and closed to inside the band (1068.75) by End-of-Day.