6.7.2012 Fiber Trade Review

Went short on fiber for a 1% counter trend scalp trade.  Entry at 2610.  Closed entire position at 2580.  Extremely volatile price action right now.  Probably could have gotten more but played it conservative.

We had the fiber trading up to the high made May 28 and a level I had marked off on the daily chart as a possible reaction area.

We get about a 20 pip reaction to the level and then an OTE.  I didn't have my trading station open so I missed about 6 pips and entered at 2610 instead of 2616.

SMT

USDx Divergence

A/D Divergence.

Stochastic Type I reversal divergence on the 1 hour chart.

I was in such a hurry to open my trading station that I did not notice A/D divergence or stochastic divergence.  If I had I would have increased risk to 2% and would have taken half off at the 80 level and let some ride.  As it stands right now fiber traded down to the 60 level.  Still, not a bad counter trend scalp.

UPDATE:  Price ended up trading all the way down to the next support.  This could have been a 150+ pip trade.