We are into the 7th trade of swing trading
Here we can see the previous resistance zone is acting as the new support zone. But we cannot enter at current levels as the trend has not been confirmed.
Now when we look at the charts we can see it has formed a green candle near the resistance so we can take an aggressive entry at 103.6 if a gap up does not happen with the stop-loss at the low of previous day candle.
So now as we can see it has broken the previous swing high so we move the stop-loss to the low of the candle of that day on which we took the entry.
We can see that it has broken the previous swing high convincingly so we move our stop-loss to the top of the previous swing high and it is closing basis stop loss.
So now there has been a formation of a DOJI so now we need to move our closing based stop-loss to the low of the DOJI as if the low of DOJI is broken it can retrace back to lower levels.
As we can see the previous swing high was broken so we now update our trailing stop loss to the top of the swing high.
This time our stop-loss was hit at 114.30.
VERDICT – Profit of 74900.
For further reference – Ashok Leyland Swing Trade 7