Premarket Prep USDCAD 05292020

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/2020/05/23/usdcad-week-22-trading-plan/

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

Non-conjecture observations of the market

• Daily created some supply formed by a consolidation just below MN conterminous supply 1.381158, but also demand below coinciding with H4 demand listed below
  • We are in the third day of the consolidation below D1 conterminous supply 1.37779
• H4 showing Supply at D1 conterminous supply 1.37779 as well but also newly formed demand conterminous at 1.37527 above the existing demand 1.37297
• H4 price action showing some redistribution going on (phase 3)
• Market profile
  • Bracketing – market is in balance for the moment

Compared against Weekly Trading Plan

• W1 Phase 3 demand broken and testing Weekly VWAP
• Price still trading below Monthly conterminous supply 1.381158

Sentiment – Slightly Bearish

ZOIs for Possible Shorts

• New H4 conterminous supply 1.37779 same as D1 supply

ZOIs for Possible Long

• New H4 conterminous demand 1.37527
• H4 conterminous demand 1.37297

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
  • Entry on TPO break of IB
  • Early entry with price action confirmation at 
    • H4 conterminous
    • Open far from value, anticipating a move back to value using an engulfing + subsequent break of TPO
  • 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