Very Volatile USDJPY (24 Mar 09)

The closing wedge in the above USDJPY means sellers are defending their positions at higher prices and buyers are gathering at the resistance for the breakout. The time is ripe for a long trade.


Prelude:
Notice the number of candle wicks coming from the previous candle sticks. Its never unusual to see candle wicks but in this situation, most of the wicks length are 1/2 or more of the body size. Fishy or what?


The Trade:
I was spiked in on point 3 where I lost 10+ pips. But I decided to stay on for the breakout. Entered for a long breakout for 10 pips profit with a similar stop loss.
I was prepared to see blood in this trade. With the amount of volatility coming form previous candles, the upmove should not be any different. I closed out with 3 pips win. Psychologically prepared or not, this is no way to fight a battle.


On Hindsight:
This wasn't pretty. Its wrong to even say its a win; technically I chose the worse time to enter the breakout. Too volatile. Maybe it was the response to losing 10+ pips previously. Revenge is never sweet.
Trading should always be about reason and logic.


This trade is a negative example of how you should do an Intraday Trade :P