Sunday warm up May 4th 2008

Start your forex engines!  Or commodity or futures.  Whatever market you are trading.  We’ll try to accommodate you.

Sunday evening in the US is when I start drawing my vector or trendlines.  It’s really nice to delete all objects and start fresh from the weekly chart connecting significant highs and lows to form valid trendlines.

At this time gaps from the weekend are visible and attempting to be closed.  At this time I see USDCHF has not closed its gap to the upside.  We’ll look for that gap to close before making any trades, because if a gap is open there is uncertainty in the market.  Since all pairs are related if we went short USDJPY on a trendline break the USDCHF gap might stop us out as it pulls up the USD just to close the gap.  In the meantime carry pairs are wandering north waiting for direction/liquidity to enter the market.

We’ll be looking to enter the market around 8am London time to give the FOREX Capital of the world a chance to decide on a direction.  Feel free to use my trendlines as support and resistance.  Be sure to catch up on our scalping method at the Forex System Blog.  Our main system is found on the Forex Trade Call and Fundamental site as well.  Trade well.