Bear Market Trader | Premarket Prep USDCAD - London session
day trade, day trading, forex, trade plan, trading plan, USD CAD, USDCAD, premarket prep, pre-market prep,
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Premarket Prep USDCAD 05182020

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:

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

  • W1 con­ter­mi­nous sup­ply 1.41851
  • D1 con­ter­mi­nous sup­ply 1.40928

ZOIs for Pos­si­ble Long

  • W1 con­ter­mi­nous demand 1.41108
  • H4 con­ter­mi­nous demand 1.40529
  • D1 con­ter­mi­nous demand 1.39504

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

Day trader. Tech geek. Sim Racing Enthusiast.

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