This is our 3rd swing trade after the previous trade was closed after hitting trailing stop-loss.
Now when we see the chart again –
We can see that the script is in sideways trend with the top black line acting as resistance and bottom black line acting as the support level for the script.
Now for the trade what we do is put a buy stop order in this case. A buy stop order means we shall be buying if the resistance level is breaking or we shall be selling if the support level is broken.
Now as we can see the resistance level is broken and we have entered at 88.7 with stop-loss at yellow line.
As we can see it kept on rising and we updated the trailing stop-loss at the low of previous day candle.
Next day it again rose and we updated the trailing stop-loss to the low of previous day candle.
This time it was near its resistance and chances of reversal was quite high.
This time our trailing stop-loss was hit at 91.4. This time we made a profit of 18900.
For further reference – Ashok Leyland Swing Trade 3