Premarket Prep USDCAD 05222020

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 Bull Engulf within­De­mand ZOI hav­ing left D1 QLo
• New­ly formed H4 con­ter­mi­nous demand 1.39312 after which price left H4 QLo
  • Some con­ges­tion after leaving
• Mar­ket Profile
  • After being bal­anced the last two days price is now cur­rent­ly trad­ing above value

Com­pared against Week­ly Trad­ing Plan

• Week­ly Phase 3 still in play how­ev­er volatil­i­ty is pick­ing up
• Price below MN/W1 QHi

Sen­ti­ment — Slight­ly Bullish

ZOIs for Pos­si­ble Shorts

• MN/W1 QHi
• D1 Con­ter­mi­nous Supply

ZOIs for Pos­si­ble Long

• D1 Con­ter­mi­nous Demand 1.39504

Focus Points for trad­ing development

• Exit rules
  • Option 1: Time-based stop
  • Option 2: Tar­get hit (SL 20 pips + spread 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