We are onto the 5th trade of swing trading
When we look at the chart and see that the green candle is formed, we could have taken an aggressive entry but this time it is not recommended as the script is no longer in the uptrend as it broke the previous swing low.
Now we can see the lower high has been formed so we wait for the next day to enter this short trade.
Now we had entered at the opening of the day at 92.32 with stop-loss at the yellow line.
Now as we see the next day we can observe that a large green candle is formed and we had shifter the trailing stop-loss to the high of previous day candle, which could have been hit so we wait for the next day and if it opens higher than our stop-loss we would close the trade.
As we can see it was a green candle and our stop-loss was hit at 92.75 in this case.
We observe that the script is currently in sideways trend so we enter a buy trade at 92.75.
Now we see a huge green candle has been formed and is also having a large volume . In this case we could have our stop-loss at the low of huge green candle but as we can see it is a breakout trade we have our stop-loss at minor resistance which is just below the major resistance (Black line) .
Now we have shifted our stop-loss to the low of the present day candle as it is the level from which the bulls started buying and if that level is breached it can go down very quickly.
Now as we can see a DOJI is formed so we shift our stop-loss to the low of the DOJI , this time our stop-loss is closing based.
We can see that a red candle was formed and this is a sign that bears are back to drag the script down so we update our trailing stop-loss to the low of the red candle.
This time our stop-loss was hit at 104.3.
VERDICT – Profit of 77700.
For further reference – Ashok Leyland Swing Trade 5