Premarket Prep USDCAD 06012020

01 Jun Premarket Prep USDCAD 06012020

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

• Asia cre­at­ed a new Sup­ply (H4-C‑S 1.37816) and trad­ed down test­ing H4 con­ter­mi­nous demand 1.37283
• M30 still in range but dropped to bot­tom of the range, formed a bull engulf and is trad­ing below H4 demand con­ter­mi­nous 1.37283
  • Price extend­ing over KC in range
• Mar­ket Profile
  • Price below Lon­don val­ue, retest of PVAL

Com­pared against Week­ly Trad­ing Plan

• Price trad­ing below MN con­ter­mi­nous sup­ply 1.38071
• Still a whole day ahead of us before a close below or above the Dai­ly consolidation

Sen­ti­ment — Slight­ly Bearish

ZOIs for Pos­si­ble Shorts

• H4 con­ter­mi­nous sup­ply 1.37816
• MN con­ter­mi­nous sup­ply 1.38071

ZOIs for Pos­si­ble Long

• H4 con­ter­mi­nous demand 1.37283

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
  • Cut off look­ing for trades at 11:15
  • 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