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Sunday, 1 September 2013

Did you trade Opening Range Breakout on L&T ?

Hi Readers, Sharing my real trade on L&T on August 30.

L&T was in our buy list on pre-market calls on August 30. The stock made an excellent Opening Range Breakout close to our buy above level.

Pre-Market Calls

Please see the chart for more understanding of the trade. There were strong buy signals at the time
the stock moved above the opening range. There was a positive EMA crossover and an MACD
crossover. The stock moved up by 6 points giving us a chance to book profits on half the holding.



However , within minutes the 5 min candle closed below 20 EMA, which is an exit sign according to our trading system.



Read the ORB Trading system here

So the trade was fully exited with 1 lot on profit.

Here , I want to highlight the discipline required in trading. If we see an exit sign based on our trading system, it is important to exit even if you are on profit. Else the entire gains could be erased in no time.

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