Premarket Prep USDCAD 05132020

This is my pre­mar­ket prep for today’s Euro­pean ses­sion for the Forex pair USDCAD. 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.

Non-con­jec­ture obser­va­tions of the market

• D1 moved clos­er to D1 Sup­ply ZOI 1.40962 and D1 QHi after mov­ing over con­ter­mi­nous sup­ply 1.40364 from the Bear­ish Engulfing
• Not too con­vinc­ing inside bar on H4, but enough room for it to move down if move continues
• H1 Bear­ish Engulf­ing just below D1 Sup­ply ZOI 1.40962 and D1 QHi fol­lowed by a con­sol­i­da­tion (All dur­ing AS)
• M30 KC turn­ing range bound, no break from VWAP yet
• Mar­ket profile
  • HK accept­ed val­ue but was show­ing con­sol­i­da­tion with a ledge indi­cat­ing medi­um activ­i­ty ahead
    • Con­se­quent drop after tak­ing out 1.40558 dur­ing L
  • Price trad­ing above LN PVAH and Range

Sen­ti­ment — Bearish

ZOIs for Pos­si­ble Shorts

• D1 Sup­ply ZOI 1.40962 / D1 QHi

ZOIs for Pos­si­ble Long

• H4 Con­ter­mi­nous Demand 1.39942

Focus Points for trad­ing development

• Exit rules
  • Option 1: hold trade until noon (Lon­don time)
  • Option 2: Tar­get hit (SL or x2 TP)
  • NO OPTION 3
    • UNLESS a trade is entered with­in 1 hour or half hour before the hard exit rule option 1
• Entry rules
  • Use TPO con­fir­ma­tion or inval­i­da­tion for direc­tion­al deci­sions by look­ing for 
    • TPO exten­sion with a sus­tained move (BO from IB)
    • TPO exten­sion with failed auc­tion (return to IB)
    • How this direc­tion of TPO exten­sion relates to Val­ue Area open sentiment
  • 09:00–10:30 — Time peri­od for entry based on M30 and high­er price action con­fir­ma­tion in con­junc­tion with mar­ket pro­file and trade locations
  • 10:30–12:00 — Entry can be based on low­er time frame price action (but stops and fur­ther analy­sis on M30) at high­er time frame trade loca­tions with mar­ket pro­file and dai­ly range
  • No star­ing at M5 chart
  • Trade needs to have a tar­get that has the chance of hit­ting min. X2 R/R
  • Can’t re-enter a trade for one hour after a loss