Premarket Prep USDCAD 05112020

11 May Premarket Prep USDCAD 05112020

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

• D1 Con­ter­mi­nous Sup­ply Prev. Bear Engulf 1.40364 pos­si­bly a good loca­tion for a pullback
• H4 Con­ter­mi­nous Sup­ply line at 1.39378 and PVAL con­flu­ence but need TPO confirmation

Sen­ti­ment — Bearish

ZOIs for Pos­si­ble Shorts

• D1 Con­ter­mi­nous Sup­ply Prev. Bear Engulf 1.40364
• H4 Con­ter­mi­nous Sup­ply line at 1.39378
• H1 Con­ter­mi­nous Sup­ply line at 1.39493

ZOIs for Pos­si­ble Long

• D1/H4 QLo after con­fir­ma­tion of D1 or H4 bull­ish price action trig­ger­ing a pos­si­ble swing rever­sal in line with larg­er time frame trend being up

Focus Points for trad­ing development

• Exit rules
  • Option 1: hold trade until noon (Lon­don time)
  • Option 2: Tar­get hit (SL 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
  • Use TPO con­fir­ma­tion or inval­i­da­tion for direc­tion­al deci­sions by look­ing for a 
    • 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
  • 09:00–10:30 — Time peri­od for entry based on M30 and high­er price action con­fir­ma­tion in con­junc­tion with mar­ket pro­file and trade locations
  • 10:30–12:00 — Entry can be based on low­er time frame price action (but stops and fur­ther analy­sis on M30) at high­er time frame trade loca­tions with mar­ket pro­file and dai­ly range
  • No start­ing at M5 chart
  • Trade needs to have a tar­get that has the chance of hit­ting min. X2 R/R
• I will post trades including:
  • Trade loca­tion
  • Price action entry condition
  • What were TPOs doing at the time
  • With screen­shot
• Learn how to use the Ses­sion Range Exhaustion
• Keep own approach of KC, VWAP as odd enhancers instead of hard trade locations