We are continuing our swing trade from the previous trade –
Last time our trailing stop-loss was hit at the black line. But as we can see the script was now in an uptrend so we wait for the formation of a green candle so we can buy again.
Now as we can see the green candle was formed and we took entry at the current level at 83.3 and stop-loss was set at the yellow line. We have taken an aggressive entry as our risk: reward ratio is very good. Here our risk is very low and the reward is very high.
Now after consolidating for a few days the script again rose so now we update our trailing stop-loss to the lowest point of the consolidation level.
It consolidated after the big green candle and again rose so we updated the trailing stop-loss to the lowest of the next consolidation level.
Our trailing stop-loss was hit at 85.1. Thus we made a profit of Rs 12600.
For further reference – Ashok Leyland Swing Trade 2