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:

http://bearmarkettrader.com/2020/05/17/usdcad-week-21-trading-plan/

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