This last Sunday created a situation that had already been covered here couple of times before as weekend trading. I don’t necessarily advocate trading on Sunday afternoon/evening our time, sometimes viable opportunities are created. If somebody spends that time in front of computer anyways, then might as well try to make few pips, should right situation come along. Previous explanation was not the best and lacked good example, something I can correct now with very recent charts, from just few days ago.
Generally speaking it has to do with continuation of Friday trend when market reopens on Sunday. This is most visible on Yen pairs, although sometimes applicable to AUD and NZD. If this relationship takes place, strong closing Friday, followed by extension on Sunday, chances are good that this move will run out of steam fairly quickly. My observations indicate 4-6 hours after most brokers open for business. That is the time window during which those early trends have tendencies to revers or pause. I’m looking for strong reversal, using hourly charts.
More of Sunday evening set up. 
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October 3rd, 2009, 12:34 PM
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