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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
- Daily created some supply formed by a consolidation just below MN conterminous supply 1.381158, but also demand below coinciding with H4 demand listed below
- We are in the third day of the consolidation below D1 conterminous supply 1.37779
- H4 showing Supply at D1 conterminous supply 1.37779 as well but also newly formed demand conterminous at 1.37527 above the existing demand 1.37297
- H4 price action showing some redistribution going on (phase 3)
- Market profile
- Bracketing – market is in balance for the moment
Compared against Weekly Trading Plan
- W1 Phase 3 demand broken and testing Weekly VWAP
- Price still trading below Monthly conterminous supply 1.381158
Sentiment – Slightly Bearish
ZOIs for Possible Shorts
- New H4 conterminous supply 1.37779 same as D1 supply
ZOIs for Possible Long
- New H4 conterminous demand 1.37527
- H4 conterminous demand 1.37297
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
- Entry on TPO break of IB
- Early entry with price action confirmation at
- H4 conterminous
- Open far from value, anticipating a move back to value using an engulfing + subsequent break of TPO
- 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
