Premarket Prep USDCAD 05262020

26 May Premarket Prep USDCAD 05262020

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

• There is a ral­ly with con­se­quent base on the Dai­ly but in order to con­clude a drop we’d need a close on today’s candle
• H4 show­ing some Phase 3 price action after the Bear­ish Engulf­ing (at W1 QHi) last Fri­day (crossed down VWAP)
• Price almost near H4 Demand ZOI and D1 QLo
• No reac­tion at D1 Demand con­ter­mi­nous (yet)
• Mar­ket Profile
  • Price is below PVA

Com­pared against Week­ly Trad­ing Plan

• W1 Phase 3 still in effect

Sen­ti­ment — Bearish

ZOIs for Pos­si­ble Shorts

• MN Con­ter­mi­nous Sup­ply (best) 1.39511

ZOIs for Pos­si­ble Long

• D1 Con­ter­mi­nous Demand 1.39511
• H4 Con­ter­mi­nous Demand 1.39312 & D1 QLo

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