Equity-Earningz

Broadening Top Formation - Textbook Example

Short
NSE:L_TFH   L&T FINANCE HOLDIN
L&T Finance | Short Below 128 | Stop-loss 134 | Target 105 |
Risk/Reward 1:4


It's a broadening top formation. And pretty much like what the textbook describes. Be careful because nice-looking patterns are rarely successful.

If price closes above the upper trendline before breaking 128 then the trading setup becomes invalid.
Trade active
Comment: Shorted at 128 and price Made a low 120.50 today. Trailing Stop-loss from 134 to at clost 128. Target is 105
Comment:
Comment: Trailing Stop further form 128 to 123, which is a starting point of broadening top.

L&T Finance Shorted at 128. Target is 105. CMP 114.50
Comment:
Trade closed: target reached
Comment: Target came quickly because of selling across the glob.