26 May Daily Report Card 05262020
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
Bad Trade selection
Good Trade Execution & Mgmt.
Good Risk Adjusted Returns
Yes Daily review
Muppet meter (1 being best — 5 being worst): 2
Summary (include title of the day)
- London open below VA however looks like a possible overextension. IB range wider than usual and current day range is already at 762 from 797 indicating a possible exhaustion. Price is also at a H4 QLo so this could be that confluence but since IB extended down we need price action to confirm a failed auction.
- Price reached H4 Conterminous Demand 1.38879 after ADR had been exhausted for a while (currently 1050 @+132% of 797). This in confluence with M30 Overextension from VWAP and KC and forming what could become a morning star. M15 bullish engulfing plus hitting H4 LKC I went long: Entry 1.38880 SL 20+spread @ 1.38660 TP 1.39282
- Price moved further in my way and I manually took my trade off (time-based) at 1.38724
- AFTERMATH (post trading window, after noon)
- It would have hit my SL since it continued a bit further.
How accurate was my assessment of market context?
- I thought my assessment was good but I was pointed out that when London exhausts the ADR we could see a continuation of the move. Furthermore TPOs showed continuation signs as well.
How did I feel before, during, and after the trade?
- I felt good before the trade.
- During the trade I was thinking that it would hit my stop but I told myself to commit to the trade and observe what was happening in terms of TPOs.
- After the trade I feel good having learned a valuable lesson and only paid 0.7 R for
How well did I follow my process?
- I did well but I learned something else that I will add to my arsenal of learning market mechanics.
How well did I manage my physical, emotional and cognitive states?
- Did well here.
What did I learn today?
- An exhaustion during London is abnormal so when TPOs start extending with the direction of the exhaustion it could mean a trend is developing. In which case a break of TPO would be a good entry. After this I would need to watch for a failed auction or a sustained move. If sustained and I’m not in the move, I should stay out until absolutely certain that structure is being built.
- I incorporated this into my process plan
What’s one thing I need to do more often?
- Observe TPOs for clues on sentiment.
What’s one thing I need to do less often?
- Use my own approach as valid trade locations. They are mere odds enhancers.
For my trade plan(s) on this particular day, go here: