18 May Premarket Prep USDCAD 05182020
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
- No follow-through on D1 for an extension higher
- H4 Evening Star into H4 Supply ZOI above QHi with consequent move below with some congestion at VWAP at the moment
- M30 showing a break below VWAP into Friday’s Demand ZOI but pushing higher for the moment during AS (potential pullback to VWAP coinciding with D1 Supply conterminous 1.40928)
- Market Profile
- AS above PVAH but within London’s VA so the market is in balance for the moment
Compared against Weekly Trading Plan
- Move below D1 Supply conterminous 1.40928
- Overall in line with larger time frame bearish narrative but now focus is still the Weekly Phase 3 being in play unless we can see a break down
Sentiment — Bearish
ZOIs for Possible Shorts
- W1 conterminous supply 1.41851
- D1 conterminous supply 1.40928
ZOIs for Possible Long
- W1 conterminous demand 1.41108
- H4 conterminous demand 1.40529
- D1 conterminous demand 1.39504
Focus Points for trading development
- Exit rules
- Option 1: hold trade until noon (London time)
- Option 2: Target hit (SL 20 pips 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
- No staring at M5 chart
- Trade needs to have a target that has the chance of hitting min. X2 R/R
- 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
- I will post trades including:
- Trade location
- Price action entry condition
- What were TPOs doing at the time
- With screenshot
- Keep own approach of KC, VWAP as odd enhancers instead of hard trade locations
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