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Dorchester Center, MA 02124
Premarket Prep USDCAD 05212020
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
- What I thought was a morning star on the Daily (because of the third candle not having printed yet and thus was invalid) didn’t push higher and we meandered within the D1 Demand ZOI
- Price still within Demand ZOI and within QLo
- No reaction from this level
- H4 showing congestion at Demand ZOI (inside bar with long selling wick) but moved back up to Supply conterminous 1.39385 (actually to newly formed H4-C-S 1.39330 from previous RBD, but is currently trading above)
- coinciding with VWAP but no cross
- M30 Range bound with consolidation/phase 3 below UKC
- Market Profile
- HK looking like a P-shape in the making (shorts covering?) and trading above value
- Currently price is trading within London value, will update this with London open conditions
- NY showing buy/up composite day (not really a trend day though) and currently price is trading above it
Compared against Weekly Trading Plan
- Weekly Phase 3 still in play however volatility is picking up
- Price below MN/W1 QHi
Sentiment – Slightly Bearish
ZOIs for Possible Shorts
- H4 conterminous supply 1.39385
- H4 conterminous supply 1.39330 NEW
ZOIs for Possible Long
- H4 conterminous demand 1.38879
- Possible opportunistic trade with a hold above D1 conterminous demand 1.39504
Focus Points for trading development
- Exit rules
- Option 1: Time-based stop
- 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
