7.24.2012 Trade Example

Here could have been an interesting trade that I missed.

On the left is the cable and the right is fiber.  Cable runs up during NYO acting as a Judas swing.  Note how the run during New York takes out Asian and London highs for the cable but fiber refuses to go as high.

Both hit the CPP.  Cable hits the 5550 figure and drops 29 pips in about 30 minutes.  The 5550 figure was an important support level last week.  Support turned resistance.

Finally, and most important to answering the question of when the Judas is going to stop, after dropping price retraces perfectly to an OTE level.

For confirmation there was some slight A/D divergence and USDx divergence.

Or you could have just traded this as the fiber was the weaker pair.