6.6.2012 Fiber Trade Review

Trade closed at 2550.  ADR, time of day, and R1 pivot.  Plus I figured if they were going to take out the high of the week at 2541 the 50 institutional level would be like a magnet.  I had to set a limit order to take William to the doctor so I may have tried to squeeze out more if I was in front of the charts.

Over 4% profit on this trade puts us in profits for the week.

The 2450 level was drawn off the daily/weekly/monthly chart as a level where banks reacted in the past shown on this weekly chart.

 On the 1 hour chart draw a fib from weekly low to high 61% retracement lies at 2444.

Yesterday's low to today's high has an OTE 2443.

Great example of SMT.

 USDx Divergence

You can see price reacted to this level last Friday twice.  On Monday it blows through it and now traded back down to it.  Resistance becomes support.  It does this again yesterday where it trades below it and again it becomes resistance.  Back through it this morning and back to support.

Other confluences are Asian session low, yesterday's MS1 pivot level, and weekly trinity fair level value (not pictured).

We did not have stochastic or A/D divergence.  Except we did have a Type II divergence on A/D but I'm not sure that is a real thing or how powerful it is.

Patience pays off.  I demo traded the 80 level but when price hit the 50 level I entered on the live account.  About the only thing I did wrong was I did not wait for an OTE on the smaller time scale to form to reduce risk.  This worked out as one never really formed.  However, once price moved away from the 2440 level I did use that as the swing point and moved my stop up to 2430 in effect risking 1.3% for a 4% gain.  Nice risk to reward ratio there.