Daily Report Card 05122020

My week­ly goal

Only take trades when there are at least 4 con­flu­ences. Trade loca­tion. Mar­ket Pro­file. Price action con­fir­ma­tion. Fol­low hard entry and exit rules.

Good Pre-mar­ket routines

Good Ses­sion PECS

Good Trade selec­tion

Good Trade Exe­cu­tion & Mgmt.

Good Risk Adjust­ed Returns

Yes Dai­ly review

Mup­pet meter (1 being best — 5 being worst): 1

How accu­rate was my assess­ment of mar­ket context?

• Dur­ing the session
  • Lon­don open above PVAH below Prev Day High, IB range still above PVAH+range, but only trad­ed down
  • H4 inside bar at D1-C‑S 1.40364 before open
  • H1 show­ing poten­tial break down to accept val­ue but no close yet
  • Placed a lim­it order just below PVAH at 1.4009
  • Short 1.40092 SL 1.40345 TP 1.39595
    • Rea­sons for entering
      • H4 inside bar with con­se­quent move away from D1 con­ter­mi­nous sup­ply 1.40364
      • Lon­don open­ing above PVAH and range only trad­ed down to this level
      • H1 con­vinc­ing­ly clos­ing down with bear­ish engulfing
      • IB extend­ing down trig­ger­ing my lim­it order
  • Sum­ma­ry of the day
    • A vis­it of D1 Qhi result­ed in a bear­ish engulf­ing. The mar­ket react­ed to the swing extreme. 
    • Today we saw a H4 inside bar with con­se­quent move away from the D1 retest of D1 con­ter­mi­nous sup­ply at 1.40364 before Lon­don open
    • Lon­don opened above PVAH and range and only trad­ed down to test this level.
    • H1 con­vinc­ing­ly closed down with a bear­ish engulf­ing and IB extend­ed down trig­ger­ing my lim­it order that was sit­ting just below PVAH
    • MP was show­ing struc­ture being formed in the low­er half and even though it tech­ni­cal­ly accept­ed val­ue it con­sol­i­dat­ed a bit before mov­ing fur­ther down
    • If price returned back into IB — we would have been expect­ing low/medium activ­i­ty, out­side of IB but not con­fi­dent­ly away would have sig­naled a medi­um activ­i­ty from oth­er mar­ket par­tic­i­pants. This is what we had today. If it was out­side of IB       and leav­ing a num­ber of sin­gle prints upon exten­sion (trend) it would have been very like­ly a high activ­i­ty day.
    • Fur­ther­more, dur­ing this con­sol­i­da­tion at the dis­tri­b­u­tion edge PVAH a ledge dur­ing F was cre­at­ed indi­cat­ing a bat­tle between 2 prices 1.4019 and 1.4012. If 19 was tak­en out we would have seen a rever­sal at this lev­el, luck­i­ly we saw the lat­ter get­ting tak­en out.
    • This ledge can give more insight into who is win­ning inside a con­sol­i­da­tion. Apart from the con­sol­i­da­tion and the bear­ish engulf on the M15 we now have this ledge as extra piece o ref­er­ence for who is win­ning inside the consolidation.

How well did I fol­low my process?

• I did great fol­low­ing my process but I got­ta give props to my men­tor. Not sure how it would have been in terms of trade man­age­ment if she wasn’t there guid­ing me through the process and ‘dis­tract­ing’ me. Obvi­ous­ly, my ego likes to think that I would have fol­lowed my rules but that’s too easy to say. I did real­ly well plac­ing my lim­it order under where we would have an exten­sion of IB. 

How well did I man­age my phys­i­cal, emo­tion­al and cog­ni­tive states?

• Did great here

What did I learn today?

• I learned how to look at TPOs being cre­at­ed in the pro­file and how I can use it to mea­sure activ­i­ty by oth­er mar­ket par­tic­i­pants and my over­all con­vic­tion in the move. Although I have hard exit rules to fol­low I can tell there is lots to learn here but that’s for anoth­er day. Step by step until I get more com­fort­able trad­ing with mar­ket profile. 

What’s one thing I need to do more often?

• Trust the process. I had a strong urge based on my ‘old’ approach to take prof­its ear­ly (price too far extend­ed from VWAP on low­er time frame and hit­ting VWAP on high­er time frame, hit­ting low­er KC) It turns out the men­tor knows a thing or two. Who knew?! 🙂

What’s one thing I need to do less often?

• Rely on the old approach. There’s a rea­son why it per­formed sub­par. Use it as odd enhancers not as hard entry/exit rules. Let mar­ket pro­file guide me instead.

For my trade plan(s) on this par­tic­u­lar day, go here:

Pre­mar­ket Prep USDCAD 05122020

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