Premarket Prep USDCAD 05202020

20 May Premarket Prep USDCAD 05202020

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 morn­ing star inside Dai­ly demand ZOI at Week­ly Phase 3 range bottom
• DRF yes­ter­day strong bull can­dle from H4 con­ter­mi­nous demand 1.38879 to H4 Sup­ply ZOI con­ter­mi­nous 1.39385 just above D1/H4 QLo
  • Tech­ni­cal­ly closed out­side of QLo but H4 is re-enter­ing QLo dur­ing AS after a weak inside bar but will mon­i­tor a poten­tial new con­ter­mi­nous line
• H4 KC still in a range and price has con­fi­dent­ly moved back inside
• M30 down­trend tran­si­tioned to range
• Mar­ket Profile
  • Price cur­rent­ly trad­ing with­in val­ue, mar­ket is in bal­ance for the moment so will mon­i­tor Lon­don open + IB extension

Com­pared against Week­ly Trad­ing Plan

• Week­ly Phase 3 still in play how­ev­er volatil­i­ty is pick­ing up

Sen­ti­ment — Slight­ly Bullish

ZOIs for Pos­si­ble Shorts

• H4 con­ter­mi­nous sup­ply 1.39385
• New­ly formed H4 con­ter­mi­nous sup­ply 1.39328 if price action and MP confirm

ZOIs for Pos­si­ble Long

• H4/D1 QLo
• D1 con­ter­mi­nous demand 1.39504
• H4 con­ter­mi­nous demand 1.38879

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 con­sid­er­a­tion of ‘pat­terns’. Price action + trade loca­tion (high­er time­frame tak­ing prece­dence over lower)
  • Min. X2 R/R
  • Use TPO con­fir­ma­tion or inval­i­da­tion for direc­tion­al deci­sions by look­ing for in con­junc­tion with H4 con­ter­mi­nous lines
    • 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