Premarket Prep USDCAD 05182020

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/2020/05/17/usdcad-week-21-trading-plan/

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

Non-conjecture observations of the market

No follow-through on D1 for an extension higher
H4 Evening Star into H4 Supply ZOI above QHi with consequent move below with some congestion at VWAP at the moment
M30 showing a break below VWAP into Friday’s Demand ZOI but pushing higher for the moment during AS (potential pullback to VWAP coinciding with D1 Supply conterminous 1.40928)
Market Profile
- AS above PVAH but within London’s VA so the market is in balance for the moment

Compared against Weekly Trading Plan

Move below D1 Supply conterminous 1.40928
Overall in line with larger time frame bearish narrative but now focus is still the Weekly Phase 3 being in play unless we can see a break down

Sentiment – Bearish

ZOIs for Possible Shorts

ZOIs for Possible Long

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
- No staring at M5 chart
- Trade needs to have a target that has the chance of hitting min. X2 R/R
- 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
I will post trades including:
- Trade location
- Price action entry condition
- What were TPOs doing at the time
- With screenshot
Keep own approach of KC, VWAP as odd enhancers instead of hard trade locations

Leave a ReplyCancel Reply