Premarket Prep USDCAD 05122020

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/2020/05/09/usdcad-week-20-trading-plan/

The purpose of a premarket prep is to find setups within my weekly trade plan bias.

Non-conjecture observations of the market

• Pullback to D1 Conterminous Supply Prev. Bear Engulf 1.40364 but not reactive yet. Might continue to D1 Conterminous supply at 1.40962
• Newly formed H4 conterminous demand 1.40232
• Hasn’t reached D1 QHi swing, might make exhaustion move up
• Newly formed H1 Supply ZOI conterminous 1.40507 during AS

Sentiment – Bearish

ZOIs for Possible Shorts

• D1 QHi 1.40922 & D1 Conterminous supply at 1.40962
• D1 Conterminous Supply Prev. Bear Engulf 1.40364

ZOIs for Possible Long

• H4 conterminous demand 1.40232

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 
    • 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