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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
- There is a rally with consequent base on the Daily but in order to conclude a drop we’d need a close on today’s candle
- H4 showing some Phase 3 price action after the Bearish Engulfing (at W1 QHi) last Friday (crossed down VWAP)
- Price almost near H4 Demand ZOI and D1 QLo
- No reaction at D1 Demand conterminous (yet)
- Market Profile
- Price is below PVA
Compared against Weekly Trading Plan
- W1 Phase 3 still in effect
Sentiment – Bearish
ZOIs for Possible Shorts
- MN Conterminous Supply (best) 1.39511
ZOIs for Possible Long
- D1 Conterminous Demand 1.39511
- H4 Conterminous Demand 1.39312 & D1 QLo
Focus Points for trading development
- Exit rules
- Option 1: Time-based stop
- Option 2: Target hit (SL 20 pips + spread 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 consideration of ‘patterns’. Price action + trade location (higher timeframe taking precedence over lower)
- Min. X2 R/R
- Use TPO confirmation or invalidation for directional decisions by looking for in conjunction with H4 conterminous lines
- 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
