We are onto trade no. 4 of swing trading.
As we can see the present chart –
Here we observe that there are 2 resistances
- The top line being the major resistance.
- The small line below it is minor resistance.
Now the previous resistance which was broken now acts as the support level.
We take an aggressive entry after the formation of the green candle at 93.5 and stop-loss at the low of the previous red candle.
As we can see that after a bit of consolidation and moving in sideways trend it rose so we update our stop-loss at the low of sideways consolidation level.
As we can see it has broken the minor resistance so we update our stop-loss to the low of the previous candle.
Here our trailing stop-loss was hit at 93.45. Thus we made a loss of Rs 700.
For further reference – Ashok Leyland Swing Trade 4