Premarket Prep USDCAD 05292020 - Bear Market Trader
day trade, day trading, forex, trade plan, trading plan, USD CAD, USDCAD, premarket prep, pre-market prep,
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Premarket Prep USDCAD 05292020

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:

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

Day trader. Tech geek. Sim Racing Enthusiast.

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