While working through my carb issues noticed there was a white wire with red tracer I believe coming from OD solenoid that was getting power off coil. That does not seem right, so disconnected it. Does anyone know where this is to go? Looked for wiring diagram without much luck. Where can I find the wiring for the OD? My book does not cover much about that.

What year and model?

Durham Missouri

From Mercury manual ..... Colors my not match ..... Easy to follow diagram......

That wire is on all O/D cars. The way I understand it, it's there to interrupt the firing cycle just long enough for O/D pawl to engage.  I left my wiring stock and everything works as it's suppose to.  Does your O/D work?

The wire on the distributor side of your coil goes thru your normally open contact of your kick down switch to the ground out contact in your solenoid.
The ground out contact in the solenoid closes when your solenoid is energized but will not short out your ignition unless your kick down switch is depressed to the floor. At the same time the kick down switch opens the normally closed contact and removes the ground side of the relay coil power which de energizes the solenoid relay. When the solenoid is de energized & retracted ground out contact opens & ignition is restored.
By shorting out your ignition (one or two revolutions) it allows the balk ring / transmission to unload so solenoid plunger can retract and drop you out of OD & into passing gear.
This will all reverse back into OD when you have lifted off the gas releasing the kick down switch.

I have a 1955 Ford Crown Victoria, stock 3speed with OD. The OD seem to work but never notice the kick down working. I had a wire going from coil that was black then the white with red plugged into it. Seemed strange so for now I remove it from coil.