Daily Report Card 05262020

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

Bad Trade selection

Good Trade Exe­cu­tion & Mgmt.

Good Risk Adjust­ed Returns

Yes Dai­ly review

Mup­pet meter (1 being best — 5 being worst): 2

Sum­ma­ry (include title of the day)

• Lon­don open below VA how­ev­er looks like a pos­si­ble overex­ten­sion. IB range wider than usu­al and cur­rent day range is already at 762 from 797 indi­cat­ing a pos­si­ble exhaus­tion. Price is also at a H4 QLo so this could be that con­flu­ence but since IB extend­ed down we need price action to con­firm a failed auction.
• Price reached H4 Con­ter­mi­nous Demand 1.38879 after ADR had been exhaust­ed for a while (cur­rent­ly 1050 @+132% of 797). This in con­flu­ence with M30 Overex­ten­sion from VWAP and KC and form­ing what could become a morn­ing star. M15 bull­ish engulf­ing plus hit­ting H4 LKC I went long: Entry 1.38880 SL 20+spread @ 1.38660 TP 1.39282
• Price moved fur­ther in my way and I man­u­al­ly took my trade off (time-based) at 1.38724
• AFTERMATH (post trad­ing win­dow, after noon)
  • It would have hit my SL since it con­tin­ued a bit further. 

How accu­rate was my assess­ment of mar­ket context?

• I thought my assess­ment was good but I was point­ed out that when Lon­don exhausts the ADR we could see a con­tin­u­a­tion of the move. Fur­ther­more TPOs showed con­tin­u­a­tion signs as well. 

How did I feel before, dur­ing, and after the trade?

• I felt good before the trade. 
• Dur­ing the trade I was think­ing that it would hit my stop but I told myself to com­mit to the trade and observe what was hap­pen­ing in terms of TPOs.
• After the trade I feel good hav­ing learned a valu­able les­son and only paid 0.7 R for

How well did I fol­low my process?

• I did well but I learned some­thing else that I will add to my arse­nal of learn­ing mar­ket mechanics. 

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

• Did well here. 

What did I learn today?

• An exhaus­tion dur­ing Lon­don is abnor­mal so when TPOs start extend­ing with the direc­tion of the exhaus­tion it could mean a trend is devel­op­ing. In which case a break of TPO would be a good entry. After this I would need to watch for a failed auc­tion or a sus­tained move. If sus­tained and I’m not in the move, I should stay out until absolute­ly cer­tain that struc­ture is being built.
  • I incor­po­rat­ed this into my process plan

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

• Observe TPOs for clues on sentiment. 

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

• Use my own approach as valid trade loca­tions. They are mere odds enhancers. 

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