The document outlines a structured pre-market plan for traders to identify high-probability trade setups by assessing market conditions, liquidity, and Fair Value Gaps (FVGs). Key steps include checking for higher timeframe FVGs, previous session liquidity, and the impact of economic news on price movement. The emphasis is on discipline and patience to ensure trades are executed based on clear conditions to enhance consistency.
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Trader Jo's Pre-Market Plan
The document outlines a structured pre-market plan for traders to identify high-probability trade setups by assessing market conditions, liquidity, and Fair Value Gaps (FVGs). Key steps include checking for higher timeframe FVGs, previous session liquidity, and the impact of economic news on price movement. The emphasis is on discipline and patience to ensure trades are executed based on clear conditions to enhance consistency.
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Trader Jo’s
Pre-Market Plan
Framework for High-Probability
Trade Setups
Before entering a trade, I follow a structured pre-market plan to
assess market conditions and determine the best opportunities. This checklist ensures that every trade has a clear framework based on liquidity, Fair Value Gaps (FVGs), and momentum.
By using this approach, you’ll be able to:
Identify key liquidity targets before the session begins
Recognize high-probability trade setups Filter out low-probability conditions and avoid unnecessary trades
Let's dive in.
Are We Inside a Higher Timeframe FVG? Before executing any trade, I check if price is inside a 1H, 4H, 1D, or 1W Fair Value Gap (FVG).
If price is inside an HTF FVG, I look for a reaction and a
potential setup to target opposing liquidity.
If price is outside an FVG, I analyze whether price is seeking a
new imbalance or liquidity pool.
Example: In the charts, price is reacting from a higher
timeframe FVG. This suggests I should be looking to target opposing liquidity, such as the Asia Low and Previous Day Low. Do We Have Previous Session Liquidity? Liquidity drives price. Before trading, I confirm whether key liquidity pools from the previous session are present:
Previous Session Buyside/Sellside Liquidity – Are there clear
liquidity levels that price may sweep?
Asia High/Low, London High/Low, Previous Day High/Low –
These are crucial levels for trade targets.
If liquidity is present and price is reacting from a
higher timeframe level, I now have a clear directional bias. Is There Red Folder News? Economic news releases (red folder news) create volatility and impact price movement. Adjusting to news events is critical:
If red folder news is present → Expect momentum-driven price
action.
If no red folder news → Expect low-probability setups and
choppy price action.
News Wick Strategy: If a news wick forms,
I apply the Gooey Model to time my entry. (Check my YouTube to learn this model.) Is Price Delivering from Internal to External Liquidity? Understanding liquidity flow is essential to confirming a trade setup:
✅ External Liquidity → Internal Liquidity → Low-probability trade ❌ If price is not targeting liquidity, then no trade framework exists, and I will not take an entry.
At market open, I want to see price take internal
liquidity first, then target external liquidity for a strong trade setup. Conclusion: Executing the Plan with Precision By following this structured pre-market framework, I ensure that every trade is based on clear conditions, reducing randomness and increasing consistency.
Pre Market Checklist:
Check HTF FVGs for reactions.
Identify previous session liquidity pools.
Factor in red folder news for momentum or lack of movement.
Ensure price is delivering from internal to external liquidity.
If these conditions do not align, I do not trade. Discipline
and patience are key to executing high-probability setups.
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