Long USDJPY @ 118.35

Entry: (2006.02.21 6:43 EST)
Earlier today this pair traded in a very tight range near 118.20. It broke through the range's resistance around 6 PM and the MACD (which I have changed to be 50/200/25) indicated a buy would be a good idea. I've been toying with the idea of basing more trades on my current MACD setup but I am struggling with the fact that it is essentially the same as the different MAs that I have running. Anyway, all four MAs lined up, MACD agreed, I put on the trade. I have a trailing stop 15 pips behind the price and my T/P is at 118.80.

Exit: My trailing stop followed the price up to 118.46 and then stayed there until the price dropped back down to hit it around 1 AM. I'm satisfied that the trade was profitable but I really should have exited when I was 20 pips ahead of the game instead of allowing my gains to drop back to 11. Another key lesson is that after taking out my stop, the price continued to climb all the way to my original T/P. The retracement was a pretty clear one and, had I been watching it, I probably could have adjusted my stop so that I still protected my trade but also allowed enough room for the retracement to happen without closing out my position.

+11 pips