12 May Daily Report Card 05122020
My weekly goal
Only take trades when there are at least 4 confluences. Trade location. Market Profile. Price action confirmation. Follow hard entry and exit rules.
Good Pre-market routines
Good Session PECS
Good Trade selection
Good Trade Execution & Mgmt.
Good Risk Adjusted Returns
Yes Daily review
Muppet meter (1 being best — 5 being worst): 1
How accurate was my assessment of market context?
- During the session
- London open above PVAH below Prev Day High, IB range still above PVAH+range, but only traded down
- H4 inside bar at D1-C‑S 1.40364 before open
- H1 showing potential break down to accept value but no close yet
- Placed a limit order just below PVAH at 1.4009
- Short 1.40092 SL 1.40345 TP 1.39595
- Reasons for entering
- H4 inside bar with consequent move away from D1 conterminous supply 1.40364
- London opening above PVAH and range only traded down to this level
- H1 convincingly closing down with bearish engulfing
- IB extending down triggering my limit order
- Reasons for entering
- Summary of the day
- A visit of D1 Qhi resulted in a bearish engulfing. The market reacted to the swing extreme.
- Today we saw a H4 inside bar with consequent move away from the D1 retest of D1 conterminous supply at 1.40364 before London open
- London opened above PVAH and range and only traded down to test this level.
- H1 convincingly closed down with a bearish engulfing and IB extended down triggering my limit order that was sitting just below PVAH
- MP was showing structure being formed in the lower half and even though it technically accepted value it consolidated a bit before moving further down
- If price returned back into IB — we would have been expecting low/medium activity, outside of IB but not confidently away would have signaled a medium activity from other market participants. This is what we had today. If it was outside of IB and leaving a number of single prints upon extension (trend) it would have been very likely a high activity day.
- Furthermore, during this consolidation at the distribution edge PVAH a ledge during F was created indicating a battle between 2 prices 1.4019 and 1.4012. If 19 was taken out we would have seen a reversal at this level, luckily we saw the latter getting taken out.
- This ledge can give more insight into who is winning inside a consolidation. Apart from the consolidation and the bearish engulf on the M15 we now have this ledge as extra piece o reference for who is winning inside the consolidation.
How well did I follow my process?
- I did great following my process but I gotta give props to my mentor. Not sure how it would have been in terms of trade management if she wasn’t there guiding me through the process and ‘distracting’ me. Obviously, my ego likes to think that I would have followed my rules but that’s too easy to say. I did really well placing my limit order under where we would have an extension of IB.
How well did I manage my physical, emotional and cognitive states?
- Did great here
What did I learn today?
- I learned how to look at TPOs being created in the profile and how I can use it to measure activity by other market participants and my overall conviction in the move. Although I have hard exit rules to follow I can tell there is lots to learn here but that’s for another day. Step by step until I get more comfortable trading with market profile.
What’s one thing I need to do more often?
- Trust the process. I had a strong urge based on my ‘old’ approach to take profits early (price too far extended from VWAP on lower time frame and hitting VWAP on higher time frame, hitting lower KC) It turns out the mentor knows a thing or two. Who knew?! 🙂
What’s one thing I need to do less often?
- Rely on the old approach. There’s a reason why it performed subpar. Use it as odd enhancers not as hard entry/exit rules. Let market profile guide me instead.
For my trade plan(s) on this particular day, go here: