Premarket Prep USDCAD 05142020

14 May Premarket Prep USDCAD 05142020

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

• Price with­in MN1/W1 QHi
• Week­ly Phase 3 still in effect
• D1 QPs act­ing as bounce points with­in week­ly dis­tri­b­u­tion range
• Return to D1 QHi and Sup­ply ZOI 1.40962 (estab­lished begin­ning April) with some low­er time frame con­ges­tion in its path
• H4 show­ing mul­ti­ple demand ZOIs trend­ing up
  • Week­ly trend is up, Dai­ly down, H4 up
• Price slight­ly above D1 QHi but test­ed H4 QHi with small inside bar cre­at­ing a sup­ply ZOI align­ing new­ly formed H4 sup­ply con­ter­mi­nous almost exact­ly with pre­vi­ous­ly estab­lished Dai­ly con­ter­mi­nous 1.40962
  • H1 test­ing this lev­el and formed a bear­ish engulf­ing dur­ing AS but no push lower
• Mar­ket Profile
  • AS opened above PVAH and range in a con­sol­i­dat­ing pat­tern below prev day high 1.41146
  • Cur­rent­ly price trad­ing above PVAH and range of the Lon­don session
• Side note: M30 KC chan­nel trend­ing up, although price re-entered KC it is still above VWAP

Sen­ti­ment — Slight­ly Bearish

ZOIs for Pos­si­ble Shorts

• D1 Sup­ply ZOI 1.40962 / D1 QHi

ZOIs for Pos­si­ble Long

• H4 Con­ter­mi­nous Demand 1.40528 (PVAH area)

Focus Points for trad­ing development

• Exit rules
  • Option 1: hold trade until noon (Lon­don time)
  • 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
  • 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
  • No star­ing at M5 chart
  • Trade needs to have a tar­get that has the chance of hit­ting min. X2 R/R
  • Can’t re-enter a trade for one hour after a loss