7.19.2012 Fiber Trade Review

Bullish bias right now.  Would rather trade the cable as it is the stronger of the two pair but today the fiber gave a New York open OTE that lined up with HTF support and with SMT divergence so I entered at 1.5% risk at 2290.

Price moves up almost 20 pips in my favor but then retraces with some crazy volatility.  I don't know if I ever saw my broker feed jump price around like I saw today.  I put my stop to break even because something just didn't seem right and price eventually hits it.

Price continues to drive down while USDx doesn't move at all and cable moves very little.  Huge clue that this is just a stop drive by the banks.  I look for where I think stops would be resting and decide on the 2260 level.  This would take out stops on the daily low and confluence with today's central pivot point.

Price comes down and hits my limit order to go long and ends up going all the way down to 2227 with my stop at 2230.  This level is an OTE from PDL to current week high along with weekly low to high.  With the huge USDx divergence I go long again at 2235 and take the entire position off at 2265 to mitigate the earlier loss.

I tried to enter on a turtle soup type entry.  I would have been better off waiting for a bounce.  I would have watched it trade down to 2227 and bounce up nearly 20 pips.  I could have bought on the small retrace you see on the chart.  I'm betting it will trade at least to the 2300 figure and long term higher.