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Volatility Stop

Capital Risk OptimizerCapital Risk Optimizer 🛡️ The Capital Risk Optimizer is an educational tool designed to help traders study capital efficiency, risk management, and scaling strategies when using leverage. This script calculates and visualizes essential metrics for managing leveraged positions, including: Entry Price – The current market price. Stop Loss Level – Automatically derived using the 30-bar lowest low minus 1 ATR (default: 14-period ATR), an approach designed to create a dynamic, volatility-adjusted stop loss. Stop Loss Distance (%) – The percentage distance between entry and stop. Maximum Safe Leverage – The highest leverage allowable without risking liquidation before your stop is reached. Margin Required – The amount of collateral necessary to support the desired position size at the calculated leverage. Position Size – The configurable notional value of your trade. These outputs are presented in a clean, customizable table overlay so you can quickly understand how position sizing, volatility, and leverage interact. By default, the script uses a 14-period ATR combined with the lowest low of the past 30 bars, providing an optimal balance between sensitivity and noise for defining stop placement. This methodology helps traders account for market volatility in a systematic way. The Capital Risk Optimizer is particularly useful as a portfolio management tool, supporting traders who want to study how to scale into positions using risk-adjusted sizing and capital efficiency principles. It pairs best with backtested strategies, and does not directly produce signals of any kind. How to Use: Set your desired position size. Adjust the ATR and lookback settings to fine-tune stop loss placement. Study the resulting leverage and margin requirements in real time. Use this information to simulate and visualize potential trade scenarios and capital allocation models. Disclaimer: This script is provided for educational and informational purposes only. It does not constitute financial advice and should not be relied upon for live trading decisions. Always do your own research and consult with a qualified professional before making any trading or investment decisions.
Pine Script® indicator
by RWCS_LTD
ATR Buy, Target, Stop + OverlayATR Buy, Target, Stop + Overlay This tool is to assist traders with precise trade planning using the Average True Range (ATR) as a volatility-based reference. This script plots buy, target, and stop-loss levels on the chart based on a user-defined buy price and ATR-based multipliers, allowing for objective and adaptive trade management. *NOTE* In order for the indicator to initiate plotted lines and table values a non-zero number must be entered into the settings. What It Does: Buy Price Input: Users enter a manual buy price (e.g., an executed or planned trade entry). ATR-Based Target and Stop: The script calculates: Target Price = Buy + (ATR × Target Multiplier) Stop Price = Buy − (ATR × Stop Multiplier) Customizable Timeframe: Optionally override the ATR timeframe (e.g., use daily ATR on a 1-hour chart). Visual Overlay: Lines are drawn directly on the price chart for the Buy, Target, and Stop levels. Interactive Table: A table is displayed with relevant levels and ATR info. Customization Options: Line Settings: Adjust color, style (solid/dashed/dotted), and width for Buy, Target, and Stop lines. Choose whether to extend lines rightward only or in both directions. Table Settings: Choose position (top/bottom, left/right). Toggle individual rows for Buy, Target, Stop, ATR Timeframe, and ATR Value. Customize text color and background transparency. How to Use It for Trading: Plan Your Trade: Enter your intended buy price when planning a trade. Assess Risk/Reward: The script immediately visualizes the potential stop-loss and target level, helping assess R:R ratios. Adapt to Volatility: Use ATR-based levels to scale stop and target dynamically depending on current market volatility. Higher Timeframe ATR: Select a different timeframe for the ATR calculation to smooth noise on lower timeframe charts. On-the-Chart Reference: Visually track trade zones directly on the price chart—ideal for live trading or strategy backtesting. Ideal For: Swing traders and intraday traders Risk management and trade planning Traders using ATR-based exits or scaling Visualizing asymmetric risk/reward setups How I Use This: After entering a trade, adding an entry price will plot desired ATR target and stop level for visualization. Adjusting ATR multiplier values assists in evaluating and planning trades. Visualization assists in comparing ATR multiples to recent support and resistance levels.
Pine Script® indicator
by abbadon9
ATR Screener with Labels and ShapesWeekly Daily ATR Pine Scanner To find out tightness or contraction in a stock we needs to check if volatality is decreasing as well as compared to previous 14 or 10 bars volatility . we check this for weekly and then for Daily , so that we can enter in a stock which is tightest in recent times. Condition is : 1. Weekly Candle ATR x 0.8 < 10 Week ATR 2. Daily Candle ATR x 0.6 < 14 Day ATR When both of the conditions are met then they signifies that the stock has tightened in weekly and daily aswell . so now we can find ways to enter during max squeeze. How to scan in Pine Scanner ? FIrst add indicator as favourite and Go to pine scanner page in trading view and then scan your watchlist and there you will see 3 columns 1 with only Weekly conditions met , 2 with only Daily and 3rd with Both conditions met . Select stocks and move to new watchlist and now you have those stocks which has contracted the most in recent times .
Pine Script® indicator
by RohitNain
AsturRiskPanelIndicator Summary ATR Engine Length & Smoothing: Choose how many bars to use (default 14) and the smoothing method (RMA/SMA/EMA/WMA). Median ATR: Computes a rolling median of ATR over a user-defined look-back (default 14) to derive a “scalp” target. Scalp Target Automatically set at ½ × median ATR, snapped to the nearest tick. Optional rounding to whole points for simplicity. Stop Calculation ATR Multiplier: Scales current ATR by a user input (default 1.5) to produce your stop distance in points (and ticks when appropriate). Distortion Handling: Switches between point-only and point + tick displays based on contract specifications. Risk & Sizing Risk % of account per trade (default 2 %). Calculates dollar risk per contract and optimal contract count. Displays all metrics (scalp, stop, risk/contract, max contracts, max risk, account size) in a customizable on-chart table. ATR-Based Stop Placement Guidelines Trade Context ATR Multiplier Notes Tight Range Entry 1.0 × ATR High-conviction, precise entries. Expect more shake-outs. Standard Trend Entry 1.5 × ATR Balanced for H2/L2, MTR, DT/DB entries. Breakouts/Microchannels 2.0 × ATR Wide stops through chop—Brooks-style breathing room. How to Use Select ATR Settings Pick an ATR length (e.g. 14) and smoothing (RMA for stability). Adjust the median length if you want a faster/slower scalp line. Align Multiplier with Your Setup For tight-range entries, set ATR Multiplier ≈ 1.0. For standard trend trades, leave at 1.5. For breakout/pullback setups, increase to 2.0 or more. Customize Risk Parameters Enter your account size and desired risk % per trade (e.g. 2 %). The table auto-calculates how many contracts you can take. Read the On-Chart Table Scalp shows your intraday target. Stop gives Brooks-style stop distance in points (and ticks). Risk/Contract is the dollar risk per contract. Max Contracts tells you maximum position size. Max Risk confirms total dollar exposure. Visual Confirmation Place your entry, then eyeball the scalp and stop levels against chart structure (e.g. swing highs/lows). Adjust the ATR multiplier if market context shifts (e.g. volatility spikes). By blending this sizing panel with contextual ATR multipliers, you’ll consistently give your trades the right amount of “breathing room” while keeping risk in check.
Pine Script® indicator
by Govy42
Realtime ATR-Based Stop Loss Numerical OverlayRealtime ATR-Based Stop Loss Numerical Overlay A simple, effective tool for dynamic risk management based on ATR (Average True Range) without adding cluttered and distracting lines all over your chart. 📌 Description This script plots a real-time stop loss level using the Average True Range (ATR) on your chart, helping you set consistent, volatility-based stops. It supports both: ✅ Current chart timeframe ✅ Custom fixed timeframe inputs (1m, 5m, 15m, 1h, etc.) The stop level is calculated as: Stop = ATR × Multiplier and updates in real-time. An overlay table displays on the bottom-right of your chart with the calculated stop value in a clean, simple way. ⚙️ Settings ATR Timeframe Source: Choose between using the current chart's timeframe or a fixed one (e.g. 5, 15, 60, D, etc). ATR Length: Period used to calculate the ATR (default is 14). Stop Loss Multiplier: Multiplies the ATR value to define your stop (e.g., 1.5 × ATR). Wait for Timeframe Closes: If enabled, the ATR value waits for the selected timeframe’s candle to close before updating. If unselected, it will update in real time. 🛠️ How to Use Add this script to your chart from your indicators list. Configure your desired timeframe, ATR length, and multiplier in the settings panel. Use the value shown in the table overlay as your suggested stop loss distance from entry. Adjust your position sizing accordingly to fit your risk tolerance. This tool is especially useful for traders looking for adaptive risk management that evolves with market volatility — whether scalping intraday or swing trading. 💡 Pro Tip The ATR stop can also be used to dynamically trail your stop behind price movement.
Pine Script® indicator
by HyprZero
Risk ModuleRisk Module This indicator provides a visual reference to determine position sizing and approximate stop placement. It is designed to support trade planning by calculating equalized risk per trade based on a stop distance derived from volatility. The tool offers supportive reference points that allow for quick evaluation of risk and position size consistency across varying markets. Equalized Risk Per Trade The indicator calculates the number of shares that can be traded to maintain consistent monetary risk. The formula is based on the distance between the current price and the visual stop reference, adjusting the position size proportionally. Position Size = Dollar Risk / (Entry Price – Stop Price) The risk is calculated as a percentage of account size; both of which can be set in the indicator’s settings tab. This creates a consistent risk exposure across trades regardless of volatility or structural stop distance. Stop Placement Reference The visual stop reference is derived from the Average True Range (ATR), providing a volatility-based anchor. The default value is set to 2 × ATR, but this can be customized. Price Model: Uses the current price ± ATR × multiplier. This model reacts to price movement and is set as the default option. EMA Model: Uses the 20-period EMA ± ATR × multiplier. This model is less reactive and can be an option when used in combination with an envelope indicator. Chart Elements Stop Levels: Plotted above and below either the current price or EMA, depending on the selected model. These serve as visual reference points for stop placement; the lower level a sell stop for long trades, the upper level a buy stop for short trades. Information Table: Displays the number of shares to trade, stop level and percentage risk. A compact mode is available to reduce the table to essential information (H/L and Shares). Settings Overview Stop Model: Choose between “Price” or “EMA” stop calculation logic. ATR Multiplier: Change the distance between price/EMA and the stop reference. Account Size / Risk %: These risk parameters are used to calculate dollar risk per trade. Visible Bars: Number of recent bars to show stop markers on. Compact Mode: Minimal table view for reduced chart footprint. Table Position / Size: Controls table placement and scale on the chart.
Pine Script® indicator
by StockLeave
SUPeR TReND 2.718An evolved version of the classic Supertrend, SUPeR TReND 2.718 is built to deliver elegant, high-precision trend detection using Euler's constant (e = 2.718) as its default multiplier. Designed for clarity and visual flow, this indicator brings together smooth line work, intelligent color logic, and a minimalistic tally system that tracks trend persistence — all in a highly customizable, overlay-ready format. Unlike traditional implementations, this version maintains line visibility regardless of fill opacity, ensuring crisp tracking even in complex environments. Ideal for traders who value both aesthetics and actionable structure. __________________________________________________________ 🔑 Key Features: - 📐 ATR-based Supertrend with default multiplier = e (2.718) - 📉 Dynamic trend line with optional fill beneath price - ⏳ Trend duration tally label (count-only or full format) - ⬆️ Higher-timeframe Supertrend overlay (optional) - 🟢 Directional candle coloring for clarity - 🟡 Subtle anchor line to guide perception without clutter - ⚙️ PineScript v6 compliant, efficient and modular __________________________________________________________ 🧠 Interpretation Guide: - The Supertrend line tracks trend support or resistance — beneath price in uptrends, above in downtrends. - The shaded fill reflects direction with 70% transparency. - The trend tally label counts how long the current trend has lasted. - Candle colors confirm direction without overtaking price action. - The optional HTF line shows higher-timeframe context. - A soft yellow anchor line stabilizes the fill relationship without distraction. __________________________________________________________ ⚙️ Inputs & Controls: - ✏️ ATR Length – Volatility lookback - 🧮 Multiplier – Default = 2.718 (Euler's number) - 🕰️ Higher Timeframe – Choose your bias frame - 👁️ Show HTF / Main – Toggle each trend layer - 🧾 Show Label / Simplify – Show trend duration, with or without arrows - 🎨 Color Candles – Turn directional bar coloring on or off - 🪄 Show Fill – Toggle the shaded visual rhythm - 🎛️ All visuals use tuned colors and transparencies for clarity __________________________________________________________ 🚀 Best Practices: - ✅ Works on any time frame; shines on 1h v. 1D - 🔁 Use the HTF line for macro bias filtering - 📊 Combine with volume or liquidity overlays for edge - 🧱 Use as a structural base layer with minimalist stacks __________________________________________________________ 📈 Strategy Tips: - 🧭 MTF Trend Alignment: Enable the HTF line to filter trades. If the HTF trend is up, only take longs on the lower frame, and vice versa. - 🔁 Pullback Entries: During a strong trend, consider short-term dips below the Supertrend line as possible re-entry zones — only if HTF remains aligned. - ⏳ Tally for Exhaustion: When the bar count exceeds 15+, look for confluence (volume divergence, key levels, reversal signals). - ⚠️ HTF Flip + Extended Trend: When the HTF trend reverses while the main trend is extended, that may be a macro exit or fade signal. - 🚫 Solo Mode: Disable HTF and use the main trend + tally as a standalone signal layer. - 🧠 Swing Setup Friendly: Especially powerful on 1D or 1h in swing systems or trend-based grid strategies.
Pine Script® indicator
by TheLeadingIndicator
Custom SL/TP ZonesThe "Please Don't Stop Me Now" Indicator 📊 Ever found yourself staring at a chart, thinking "This is DEFINITELY the bottom!" only to watch your stop loss get hit faster than your ex replacing you? Well, this indicator won't stop that from happening, but at least you'll know exactly where you're going to be wrong! 🎯 How it works: See a setup you like? Pick your candle of choice (make sure it's closed - we're not fortune tellers here) Hit either Bull or Bear (choose wisely, or don't - we all know it's 50/50 anyway) 3. Marvel at the beautiful boxes showing your: Take Profit Zone (where you'll exit too early) Stop Loss Zone (where you'll probably exit, let's be honest) Features: Uses ATR for dynamic zones because "one size fits all" only works in disappointing Halloween costumes Extends 10 bars into the future, giving you plenty of time to watch your prediction go wrong Price labels included so you know exactly where to set your alerts (and subsequently ignore them) Customizable multipliers for when you're feeling extra brave (or foolish) Clean interface that won't distract you from your bad decisions Remember: The market can stay irrational longer than you can stay solvent, but at least with this indicator, you'll know exactly where your rationality ends and your "This time it's different" begins! Happy Trading! (Results may vary, tears not included) Settings: TP Multiplier: How far to your dreams (Default: 4.0) SL Multiplier: How far to your nightmares (Default: 2.0) Bar Offset: Pick your poison (1 = last closed bar) Colors: Because trading isn't painful enough in grayscale
Pine Script® indicator
by mindyourbuisness
2
4 EMA & MACDThe indicator that combines Moving Average and MACD into one is very useful for providing a more complete picture of the market. Here's how it works: Moving Average (MA): This is a trend indicator that smooths the price to show the dominant trend direction. MA helps traders determine whether the market is in an uptrend, downtrend, or sideways. For example, if the price is above the MA, it might indicate an uptrend, while if the price is below the MA, it might indicate a downtrend. MACD (Moving Average Convergence Divergence): MACD measures market momentum and can provide entry and exit signals based on the difference between two moving averages (fast MA and slow MA). A buy signal occurs when the MACD crosses above the signal line, and a sell signal occurs when the MACD crosses below the signal line. Combining both gives traders a more complete view: MA provides an overview of the larger trend direction. MACD helps identify moments when momentum supports a position for entering or exiting. Common usage: Entry: If the price is above the Moving Average (uptrend) and the MACD shows a buy signal (for example, MACD crossing above the signal line), it can be a signal to buy. Exit: If the price starts moving below the MA and the MACD shows a sell signal, it can be a signal to sell or exit the position. There is an indicator called MACD + Moving Average Cross, which combines both elements, providing stronger signals and making it easier to follow the market.
Pine Script® indicator
by fathulk
8
Triple Power Stop [CHE]Triple Power Stop This indicator provides a comprehensive multi-timeframe approach for stop level and trend analysis, tailored for traders who want enhanced precision and adaptability in their trading strategies. Here's what makes the Triple Power Stop (CHE) stand out: Key Features: 1. ATR-Based Stop Levels: - Uses the Average True Range (ATR) to dynamically calculate stop levels, ensuring sensitivity to market volatility. - Adjustable ATR multiplier for fine-tuning the stop levels to fit different trading styles. 2. Multi-Timeframe Analysis: - Evaluates trends across three different timeframes with user-defined multipliers. - Enables deeper insight into the market's broader context while keeping the focus on precision. 3. Dynamic Volatility Adjustment: - Introduces a unique volatility factor to enhance stop-level calculations. - Adapts to market conditions, offering reliable support for both trending and ranging markets. 4. Clear Trend Visualization: - Stop levels and trends are visually represented with color-coded lines (green for uptrend, red for downtrend). - Seamlessly integrates trend changes and helps identify potential reversals. 5. Signal Alerts: - Long and short entry signals are plotted directly on the chart for actionable insights. - Eliminates guesswork and provides clarity in decision-making. 6. Customizability: - Adjustable parameters such as ATR length, multipliers, and label counts, allowing traders to tailor the indicator to their strategies. Practical Use: The Triple Power Stop (CHE) is ideal for traders who want to: - Manage risk effectively: With dynamically calculated stop levels, traders can protect their positions while allowing room for natural market fluctuations. - Follow the trend: Multi-timeframe trend detection ensures alignment with broader market movements. - Simplify decisions: Clear visual indicators and signals make trading decisions more intuitive and less stressful. How to Use: 1. Set the ATR length and multiplier values based on your risk tolerance and trading strategy. 2. Choose multipliers for different timeframes to adapt the indicator to your preferred resolutions. 3. Use the color-coded trend lines and entry signals to time your trades and manage positions efficiently. Disclaimer: The content provided, including all code and materials, is strictly for educational and informational purposes only. It is not intended as, and should not be interpreted as, financial advice, a recommendation to buy or sell any financial instrument, or an offer of any financial product or service. All strategies, tools, and examples discussed are provided for illustrative purposes to demonstrate coding techniques and the functionality of Pine Script within a trading context. Any results from strategies or tools provided are hypothetical, and past performance is not indicative of future results. Trading and investing involve high risk, including the potential loss of principal, and may not be suitable for all individuals. Before making any trading decisions, please consult with a qualified financial professional to understand the risks involved. By using this script, you acknowledge and agree that any trading decisions are made solely at your discretion and risk. Enhance your trading precision and confidence with Triple Power Stop (CHE)! 🚀 Happy trading Chervolino
Pine Script® indicator
by chervolino
2
ATR ReadoutDisplays a readout on the bottom right corner of the screen displaying ATR average (not of the individual candlestick, but of the current rolling period, including the candlestick in question). Due to restrictions with Pine Script (or my knowledge thereof) only the current and previous candlestick data is shown, rather than the one currently hovered over. The data is derived via the standard calculation for ATR. Using this, one can quickly and easily get the proper data needed to calculate one's stop loss, rather than having to analyze the line graph of the basic ATR indicator. Settings are implemented to change certain variables to your liking.
Pine Script® indicator
by Zachx_618
ka66: Candle Range MarkThis is a simple trailing stop loss tool using bar ranges, to be used with some discretion and understanding of basic price action. Given a configurable percentage value, e.g. 25%: A bullish bar (close > open) will be marked at the lower 25% A bearish bar (close < open) will be marked at the upper 25% The idea is to move your stop loss after each completed bar in the direction of the trade, at the configured percentage value. If you have an inside bar, or something very close to it, or a doji-type bar, don't trail that, because there is no clarity of what the bar means, we can only wait. The chart shows an example use, with trailing at 10% of the bar, from the initial stop loss after entry, trailing till we get stopped out. Some things to note: Because this example focuses on a short trade, we ignore the bullish candles, and keep our trailing stop at the last bearish candle. We ignore doji-esque candles and inside bars, where the body is in the range of the prior candle. Some definitions of inside bars include the wicks as well. I don't have a strong opinion, and this example is just for illustration. Furthermore, the inside bar will likely be the opposite of the swing bars (e.g. bullish bar in a range of bearish bars), so our stop remains unchanged. One could use this semi-systematic approach in scalping on any timeframe, for example to maximise gains, adjusting the bar percentage as needed.
Pine Script® indicator
by ka66
Visual ATR StopThis indicator uses the Average True Range (ATR) to display a visual range for stop placement. Two multiplier values (example, 1 and 3) can be set to create a filled area below the price. This area represents the range between the two ATR levels, adjusted by subtracting the current price, providing a simple way to visualize stop-loss placement based on volatility. The indicator is customizable; for example, negative values can place the area above the price for short positions. The filled color can also be removed, which allows precise levels to be marked above and below.
Pine Script® indicator
by StockLeave
Chande Volatility-Based Trailing Stops This indicator is developed from a description outlined in the Chande - Kroll book, "The New Technical Trader". It is designed to help control risk by plotting two lines that function as long and short trailing stops. How does it work? "These stops are derived from recent highest high or lowest low. They adjust based on volatility. However, to avoid giving up a sizable chunk of profit before the stop is hit, it is modified in such a way that the stop can only advance with price, not retreat. This will lock in a greater portion of potential profits..." Settings: The default settings are those described in the book. They are described as being best for intermediate term trades. Use the multiplier to tighten or loosen the stop. A smaller multiplier will result in tighter stops. It is recommended to adjust this value for your preferred timeframe. You can toggle the trailing stop lines on or off as well as cross over marker.
Pine Script® indicator
by grnghost
$TUBR: Stop Loss IndicatorATR-Based Stop Loss Indicator for TradingView by The Ultimate Bull Run Community: TUBR **Overview** The ATR-Based Stop Loss Indicator is a custom tool designed for traders using TradingView. It helps you determine optimal stop loss levels by leveraging the Average True Range (ATR), a popular measure of market volatility. By adapting to current market conditions, this indicator aims to minimize premature stop-outs and enhance your risk management strategy. --- **Key Features** - **Dynamic Stop Loss Levels**: Calculates stop loss prices based on the ATR, providing both long and short stop loss suggestions. - **Customizable Parameters**: Adjust the ATR period, multiplier, and smoothing method to suit your trading style and the specific instrument you're trading. - **Visual Aids**: Plots stop loss lines directly on your chart for easy visualization. - **Alerts and Notifications** (Optional): Set up alerts to notify you when the price approaches or hits your stop loss levels. --- **Understanding the Indicator** 1. **Average True Range (ATR)**: - **What It Is**: ATR measures market volatility by calculating the average range between high and low prices over a specified period. - **Why It's Useful**: A higher ATR indicates higher volatility, which can help you set stop losses that accommodate market fluctuations. 2. **ATR Multiplier**: - **Purpose**: Determines how far your stop loss is placed from the current price based on the ATR. - **Example**: An ATR multiplier of 1.5 means the stop loss is set at 1.5 times the ATR away from the current price. 3. **Smoothing Methods**: - **Options**: Choose from RMA (default), SMA, EMA, WMA, or Hull MA. - **Effect**: Different smoothing methods can make the ATR more responsive or smoother, affecting where the stop loss is placed. --- **How the Indicator Works** - **Long Stop Loss Calculation**: - **Formula**: `Long Stop Loss = Close Price - (ATR * ATR Multiplier)` - **Purpose**: For long positions, the stop loss is set below the current price to protect against downside risk. - **Short Stop Loss Calculation**: - **Formula**: `Short Stop Loss = Close Price + (ATR * ATR Multiplier)` - **Purpose**: For short positions, the stop loss is set above the current price to protect against upside risk. - **Plotting on the Chart**: - **Green Line**: Represents the suggested stop loss level for long positions. - **Red Line**: Represents the suggested stop loss level for short positions. --- **How to Use the Indicator** 1. **Adding the Indicator to Your Chart**: - **Step 1**: Copy the PineScript code of the indicator. - **Step 2**: In TradingView, click on **Pine Editor** at the bottom of the platform. - **Step 3**: Paste the code into the editor and click **Add to Chart**. - **Step 4**: The indicator will appear on your chart with the default settings. 2. **Adjusting the Settings**: - **ATR Period**: - **Definition**: Number of periods over which the ATR is calculated. - **Adjustment**: Increase for a smoother ATR; decrease for a more responsive ATR. - **ATR Multiplier**: - **Definition**: Factor by which the ATR is multiplied to set the stop loss distance. - **Adjustment**: Increase to widen the stop loss (less likely to be hit); decrease to tighten the stop loss. - **Smoothing Method**: - **Options**: RMA, SMA, EMA, WMA, Hull MA. - **Adjustment**: Experiment to see which method aligns best with your trading strategy. - **Display Options**: - **Show Long Stop Loss**: Toggle to display or hide the long stop loss line. - **Show Short Stop Loss**: Toggle to display or hide the short stop loss line. 3. **Interpreting the Indicator**: - **Long Positions**: - **Action**: Set your stop loss at the value indicated by the green line when entering a long trade. - **Short Positions**: - **Action**: Set your stop loss at the value indicated by the red line when entering a short trade. - **Adjusting Stop Losses**: - **Trailing Stops**: You may choose to adjust your stop loss over time, moving it in the direction of your trade as the ATR-based stop loss levels change. 4. **Implementing in Your Trading Strategy**: - **Risk Management**: - **Position Sizing**: Use the stop loss distance to calculate your position size based on your risk tolerance. - **Consistency**: Apply the same settings consistently to maintain discipline. - **Combining with Other Indicators**: - **Enhance Decision-Making**: Use in conjunction with trend indicators, support and resistance levels, or other technical analysis tools. - **Alerts Setup** (If included in the code): - **Purpose**: Receive notifications when the price approaches or hits your stop loss level. - **Configuration**: Set up alerts in TradingView based on the alert conditions defined in the indicator. --- **Benefits of Using This Indicator** - **Adaptive Risk Management**: By accounting for current market volatility, the indicator helps prevent setting stop losses that are too tight or too wide. - **Minimize Premature Stop-Outs**: Reduces the likelihood of being stopped out due to normal price fluctuations. - **Flexibility**: Customizable settings allow you to tailor the indicator to different trading instruments and timeframes. - **Visualization**: Clear visual representation of stop loss levels aids in quick decision-making. --- **Things to Consider** - **Market Conditions**: - **High Volatility**: Be cautious as ATR values—and thus stop loss distances—can widen, increasing potential losses. - **Low Volatility**: Tighter stop losses may increase the chance of being stopped out by minor price movements. - **Backtesting and Optimization**: - **Historical Analysis**: Test the indicator on past data to evaluate its effectiveness and adjust settings accordingly. - **Continuous Improvement**: Regularly reassess and fine-tune the parameters to adapt to changing market conditions. - **Risk Per Trade**: - **Alignment with Risk Tolerance**: Ensure the stop loss level keeps potential losses within your acceptable risk per trade (e.g., 1-2% of your trading capital). - **Emotional Discipline**: - **Stick to Your Plan**: Avoid making impulsive changes to your stop loss levels based on emotions rather than analysis. --- **Example Usage Scenario** 1. **Setting Up a Long Trade**: - **Entry Price**: $100 - **ATR Value**: $2 - **ATR Multiplier**: 1.5 - **Calculated Stop Loss**: $100 - ($2 * 1.5) = $97 - **Action**: Place a stop loss order at $97. 2. **During the Trade**: - **Price Increases to $105** - **ATR Remains at $2** - **New Stop Loss Level**: $105 - ($2 * 1.5) = $102 - **Action**: Move your stop loss up to $102 to lock in profits. --- **Final Tips** - **Documentation**: Keep a trading journal to record your trades, stop loss levels, and observations for future reference. - **Education**: Continuously educate yourself on risk management and technical analysis to enhance your trading skills. - **Support**: Engage with trading communities or seek professional advice if you're unsure about implementing the indicator effectively. --- **Conclusion** The ATR-Based Stop Loss Indicator is a valuable tool for traders looking to enhance their risk management by setting stop losses that adapt to market volatility. By integrating this indicator into your trading routine, you can improve your ability to protect capital and potentially increase profitability. Remember to use it as part of a comprehensive trading strategy, and always adhere to sound risk management principles. --- **How to Access the Indicator** To start using the ATR-Based Stop Loss Indicator, follow these steps: 1. **Obtain the Code**: Copy the PineScript code provided for the indicator. 2. **Create a New Indicator in TradingView**: - Open TradingView and navigate to the **Pine Editor**. - Paste the code into the editor. - Click **Save** and give your indicator a name. 3. **Add to Chart**: Click **Add to Chart** to apply the indicator to your current chart. 4. **Customize Settings**: Adjust the input parameters to suit your preferences and start integrating the indicator into your trading strategy. --- **Disclaimer** Trading involves significant risk, and it's possible to lose all your capital. The ATR-Based Stop Loss Indicator is a tool to aid in decision-making but does not guarantee profits or prevent losses. Always conduct your own analysis and consider seeking advice from a financial professional before making trading decisions.
Pine Script® indicator
by TheUltimateBullRun
Trailing Stop ProTrailing Stop Pro is a sophisticated TradingView indicator designed to enhance your trading strategy by dynamically managing trailing stops based on market volatility. This tool leverages the Average True Range (ATR) to adjust stop levels, providing traders with a robust mechanism to protect profits and minimize losses. Key Features: Dynamic Trailing Stops: Automatically adjusts stop levels using ATR, allowing for responsive and adaptive risk management. Customizable Inputs: Tailor the indicator to your trading style with adjustable parameters such as ATR Length, ATR Multiplier, and Source Vector. Visual Clarity: Distinct color settings for long and short stops, with adjustable line thickness and transparency, ensuring clear visualization on your charts. Professional Grade: The "Pro" designation signifies advanced features suitable for both novice and experienced traders seeking reliable and efficient stop management. How It Works: To set up the indicator, begin by defining the Chrono Point, which specifies the exact time you want the trailing stop mechanism to activate. This allows for precise control over when your stops begin to trail. Next, set the Credit Unit as the initial entry price for your trade, serving as the baseline from which the trailing stops will adjust. The indicator uses ATR-based adjustments to determine stop levels. Customize the sensitivity of the trailing stop by adjusting the ATR Length (default is 14) and ATR Multiplier (default is 0.5). A longer ATR length smooths out volatility, while a higher multiplier increases the distance of the stop from the price. Select your Source Vector from "High/Low," "Close," or "Open" prices as the basis for stop calculation. This flexibility allows you to align the indicator with your preferred trading strategy. The indicator plots trailing stops directly on the chart, with color-coded lines indicating long (teal) and short (red) positions. You can adjust the line thickness and transparency for optimal visibility. The Mission Status feature automatically detects whether the trade is long or short and adjusts the trailing stop accordingly. If the price hits the trailing stop, the trade is considered exited, and the indicator calculates the profit or loss percentage. Benefits: Risk Management: Protect your trades from adverse market movements while locking in profits as prices move favorably. Automation: Reduce manual intervention with automatic stop adjustments, allowing you to focus on strategic decision-making. User-Friendly Interface: Intuitive settings and clear visual cues make it easy to integrate into your existing trading workflow. Conclusion: Trailing Stop Pro is an essential tool for traders looking to enhance their risk management strategies with precision and ease. By automating the trailing stop process and providing clear visual feedback, this indicator empowers you to navigate the markets with confidence. Whether you're a seasoned trader or just starting, Trailing Stop Pro offers the functionality and flexibility needed to optimize your trading performance. The Trailing Stop Pro indicator is a tool designed to assist traders in managing risk and optimizing their trading strategies. However, it should not be considered as financial advice or a guarantee of profitability. Trading involves significant risk, and it is possible to lose more than your initial investment. Users are encouraged to thoroughly test the indicator in a demo environment and consider their own financial situation and risk tolerance before using it in live trading. Past performance is not indicative of future results, and users should seek advice from a qualified financial advisor if needed.
Pine Script® indicator
by Julien_Eche
2
Custom ATR Trailing StopThis Script creates a custom ATR (Average True Range) trailing stop. It allows traders to set up automated stop-loss levels based on the ATR, which adjusts dynamically to market volatility. The script is designed to support both long and short trades, offering flexibility and precision in trade management. When loading the indicator to your chart, simply click to set the trade begining time, confirm various settings and you are set. Check tooltips for more details in the input settigns menu. User Inputs Trade Setup: Allows users to set the trade direction (Long or Short), the signal source for entries, and the specific bar time for the trade setup. ATR Settings: Configurable ATR lookback period, ATR smoothing period, initial ATR multiplier for setting the stop-loss, breakeven ATR multiplier, and a manual breakeven level. ATR Calculations Computes the ATR and its moving average. Determines initial and breakeven stop levels based on the ATR. Signal Validation Validates long or short trade signals based on the specified bar time and trade direction. Triggers alerts when a valid trade signal is detected. Trailing Stop Logic For long trades, adjusts the stop-loss level dynamically based on the ATR. For short trades, performs similar adjustments in the opposite direction. Updates the trailing stop level to ensure it follows the price, moving closer as the price moves favorably. Resets the trade state when the stop-loss is hit, triggering an alert. Plotting Plots the trailing stop levels on the chart. Uses green for stop levels indicating profit and red for stop levels indicating a loss.
Pine Script® indicator
by LucasVivien
Consistent ATR Trailing Stop (ATR, 1m based) [nn1]This indicator implements a Consistent ATR (Average True Range) Trailing Stop that maintains uniform behavior across various chart timeframes. It's designed to provide traders with a reliable tool for setting dynamic stop-loss levels that adapt to market volatility while remaining consistent regardless of the chosen chart interval. Key Features: 1. Consistent ATR Calculation: The indicator calculates the ATR based on 1-minute data, regardless of the current chart timeframe. This ensures that the ATR value remains consistent across different intervals (e.g., 10s, 15s, 30s, 60s), providing a stable base for the trailing stop. 2. Dynamic Trailing Stop: The trailing stop adjusts based on the ATR, moving up in uptrends and down in downtrends to protect profits while allowing room for price fluctuations. 3. Trend Detection: The indicator determines the trend based on the price's relationship to the trailing stop, switching between long and short modes as the trend changes. 4. Visual Cues: The trailing stop line changes color to indicate the current trend (green for uptrends, red for downtrends) and briefly turns yellow during trend changes. Small circles below or above the price action further highlight the current trend direction. 5. Information Display: A label shows the current ATR value and trend direction, providing at-a-glance information to the trader. 6. Trend Change Highlights: The background briefly changes color when a trend change occurs, drawing attention to potential trading opportunities or exit points. Usage: - ATR Length: Set the number of periods for the ATR calculation. This is based on 1-minute data, so a value of 14 represents 14 minutes of data. - ATR Multiplier: Adjust how far the trailing stop is placed from the price. Higher values create a wider stop, allowing for more price movement before triggering. This indicator is particularly useful for traders who: - Use multiple timeframes in their analysis and want consistent signals across charts. - Seek a dynamic stop-loss method that adapts to market volatility. - Want clear visual cues for trend direction and changes. By providing a consistent ATR-based trailing stop across different timeframes, this indicator helps traders maintain a unified approach to their trading strategy, regardless of the chart interval they are viewing.
Pine Script® indicator
by nxlnumba1
RSI Trail [UAlgo]The RSI Trail indicator is a technical analysis tool designed to assist traders in making informed decisions by utilizing the Relative Strength Index (RSI) and various moving average calculations. This indicator dynamically plots support and resistance levels based on RSI values, providing visual cues for potential bullish and bearish signals. The inclusion of a trailing stop mechanism allows traders to adapt to market volatility, ensuring optimal entry and exit points. 🔶 Key Features Multiple Moving Average Types: Choose from Simple Moving Average (SMA), Exponential Moving Average (EMA), Weighted Moving Average (WMA), Running Moving Average (RMA), and McGinley Dynamic for diverse analytical approaches. Configurable RSI Bounds: Tailor the RSI lower and upper bounds to your specific trading preferences, with default settings at 40 and 60. Signals: The indicator determines bullish and bearish market states and plots corresponding signals on the chart. Customizable Visualization: Options to display the midline and color candles based on market state enhance visual analysis. Alerts: Integrated alert conditions notify you of bullish and bearish signals. 🔶 Calculations The RSI Trail indicator calculates dynamic support and resistance levels using a combination of moving averages and the Relative Strength Index (RSI). It starts by computing a chosen moving average (SMA, EMA, WMA, RMA, or McGinley) over a period of 27 using the typical price (ohlc4). The indicator then defines upper and lower bounds based on customizable RSI levels (default 40 and 60) and adjusts these bounds using the Average True Range (ATR) to account for market volatility. The upper bound is calculated by adding a volatility-adjusted value to the moving average, while the lower bound is found by subtracting this value. Bullish signals occur when the price crosses above the upper bound, and bearish signals when it falls below the lower bound. The RSI Trail indicator also can be used to identify pullback opportunities. When the price high/low crosses above/below the calculated upper/lower bound, it indicates a potential pullback, suggesting a favorable point to enter a trade during a pullback. 🔶 Disclaimer This indicator is for informational purposes only and should not be considered financial advice. Always conduct your own research and due diligence before making any trading decisions. Past performance is not necessarily indicative of future results.
Pine Script® indicator
by UAlgo
28
ATR Gerchik LightAverage True Range ( ATR ) is a technical analysis indicator that measures volatility in the market. ATR is a moving average of the true range over a period of time. ATR calculation procedure: 1. Determine the true maximum - this is the highest of the current maximum and yesterday's closing price of the day. 2. Determine the true minimum - this is the smallest of the current minimum and yesterday's closing price. 3. Determine the true range - this is the distance between the true maximum and minimum. 4. We exclude extremely large candles (> x2 ATR) and extremely small ones (< 0.5 ATR) from the obtained true ranges. 5. We calculate the average for the selected period based on the remaining range. 6. We calculate the percentage of the current True Range relative to the average ATR value for the previous period. Description: If you analyze it yourself, you will see that 75-80% of the time, the instrument moves only 1 ATR per day. You must understand that if an instrument has, for example, moved 80% of its daily range, it is not advisable to purchase it. This is comparable to a car's fuel tank: if the tank is almost empty, the car won't go far. Most indicators that calculate ATR include anomalous candles, which give unreliable results and lead to incorrect decisions. Because of this, many traders prefer to calculate ATR on their own. However, the Gerchik ATR indicator accounts for anomalous candles and filters out extremely large candles (> 2x ATR) and extremely small ones (< 0.5x ATR). Additionally, this indicator immediately shows the consumed “fuel” of the instrument as a percentage, so you don't have to calculate the distance traveled yourself. This allows you to make quick, informed decisions. If we see that the tank is almost empty, it is logical not to get into that car today. When building any strategy, you must rely on the average movement. Key Features: Anomalous Candle Filtering: Excludes extremely large and small candles to provide more reliable ATR values. Consumed Fuel Indicator: Shows the percentage of the ATR consumed, helping traders quickly assess the remaining potential movement. Daily Timeframe Focus: Designed specifically for use on daily charts for accurate long-term analysis. Practical Applications: Entry and Exit Points: Use the ATR to determine optimal entry and exit points by assessing market volatility and potential price movement. Stop-Loss Placement: Calculate stop-loss levels based on ATR to ensure they are placed at appropriate distances, accounting for current market volatility. Trend Confirmation: Use the percentage of ATR consumed to confirm the strength of a trend and decide whether to enter or exit trades. Examples of Use: Trend Following: During strong trends, ATR helps identify periods of increased volatility, signaling potential breakouts or reversals. Range Trading: In ranging markets, ATR can highlight periods of low volatility, indicating consolidation and potential breakout zones. Note: The indicator is displayed and works only on the daily timeframe! The indicator was created according to the instructions, description of the functionality, and strategy of Mr. Gerchik. Thank you so much, Chief! ________________________ Average True Range ( ATR , средний истинный диапазон) – это индикатор технического анализа, который измеряет волатильность на рынке. ATR представляет собой скользящее среднее истинного диапазона за определенный период времени. Порядок расчета ATR: 1. Определяем истинный максимум – это наивысшее из текущего максимума и вчерашней цены закрытия дня. 2. Определяем истинный минимум – это наименьшее из текущего минимума и вчерашней цены закрытия. 3. Определяем истинный диапазон – это расстояние между истинным максимумом и минимумом. 4. Исключаем из полученных истинных диапазонов экстремально большие свечи (> x2 ATR) и экстремально маленькие (< 0.5 ATR). 5. Рассчитываем среднее за выбранный период исходя из оставшегося диапазона. 6 . Рассчитываем процент текущего истинного диапазона (True Range) относительно среднего значения ATR за предыдущий период. Описание: Если вы сами проанализируете, то увидите, что 75-80% времени инструмент ходит только 1 ATR. И вы должны понимать, что если инструмент внутри дня прошел, к примеру, 80% своего движения, то этот инструмент больше нельзя покупать. Это можно сравнить с баком машины: если бак почти пустой, машина далеко не уедет. Большинство индикаторов, которые рассчитывают ATR, производят расчет с паранормальными свечами. Это дает недостоверный результат и приводит к неверным решениям. Многие трейдеры из-за этого не используют готовые индикаторы и предпочитают считать ATR самостоятельно. Но индикатор ATR Gerchik учитывает паранормальные свечи и фильтрует экстремально большие свечи (> x2 ATR) и экстремально маленькие (< 0.5 ATR). Также этот индикатор сразу показывает израсходованный "бензин" инструмента в процентах. И вам не надо самостоятельно высчитывать пройденный путь. Вы можете быстро принимать правильные решения. Если мы видим, что бак почти пустой, логично не садиться в эту машину сегодня. Когда вы строите какую-то стратегию, вы должны обязательно полагаться на среднестатистическое движение. Существует много стратегий, завязанных на ATR, которые учитывают волатильность инструмента, запас хода, точки разворота, места выставления стоп-лоссов (SL) и тейк-профитов (TP) и другие факторы. Я не буду останавливаться на них, так как каждый может найти описание этих стратегий и использовать их на свой выбор. Индикатор отображается и работает только на дневном таймфрейме! Индикатор создан по наставлениям, описанию функционала и стратегии господина Герчика. Огромное спасибо, Шеф!
Pine Script® indicator
by lotophagi108
4
ATR Price Range Prediction V.2### ATR Price Range Prediction V.2 This script calculates the expected high and low prices for the current day based on the Average True Range (ATR) and displays the proportion of days where the daily range (high - low) is greater than or equal to the ATR. Additionally, the script provides an option to adjust the size of the text displayed in the top-right corner of the chart. #### How It Works 1. **ATR Calculation**: The script calculates the ATR for a specified period (`atrPeriod`). ATR is a measure of volatility that represents the average range between the high and low prices over a specified number of periods. 2. **Expected High and Low Calculation**: - **Expected High**: Calculated by adding the ATR value to the low price of the current day. - **Expected Low**: Calculated by subtracting the ATR value from the high price of the current day. 3. **Proportion Calculation**: The script calculates the proportion of days where the daily range (high - low) is greater than or equal to the ATR value. This proportion is updated in real-time as new data comes in. 4. **Table Display**: Instead of displaying labels on each candle, the script shows the expected high, expected low, and the calculated proportion in a table located at the top-right corner of the chart. The size of the text in this table can be adjusted using the `Table Size` input. 5. **Color Coding**: The script changes the color of the bars to yellow if the daily range is greater than or equal to the ATR value, making it easy to identify these bars visually. #### How to Use - **ATR Period (`atrPeriod`)**: Adjust the period for the ATR calculation using the input parameter. The default value is 14. - **Table Size (`tableSizeOption`)**: Choose the size of the text displayed in the table. Options include `tiny`, `small`, `normal`, `large`, and `huge`. - **Expected High and Low**: Use the green and red lines to identify potential target prices or stop-loss levels for your trades. The green line represents the expected high, and the red line represents the expected low. - **Proportion**: The table in the top-right corner of the chart shows the proportion of days where the daily range is greater than or equal to the ATR value. This can provide insight into the volatility of the asset. - **Color Coding**: Yellow bars indicate days where the daily range is greater than or equal to the ATR value. --- ### ภาษาไทย ### ATR คาดการณ์ราคาสูงสุดและต่ำสุด พร้อมสัดส่วน สคริปต์นี้คำนวณราคาสูงสุดและต่ำสุดที่คาดการณ์สำหรับวันปัจจุบันโดยอิงจากค่าเฉลี่ยช่วงที่แท้จริง (ATR) และแสดงสัดส่วนของวันที่ช่วงราคาต่อวัน (สูง - ต่ำ) มากกว่าหรือเท่ากับค่า ATR นอกจากนี้ยังมีตัวเลือกในการปรับขนาดข้อความที่แสดงในกล่องข้อความมุมขวาบนของกราฟ #### วิธีการทำงาน 1. **การคำนวณ ATR**: สคริปต์คำนวณค่า ATR สำหรับช่วงเวลาที่กำหนด (`atrPeriod`) ATR เป็นมาตรวัดความผันผวนที่แสดงช่วงเฉลี่ยระหว่างราคาสูงสุดและต่ำสุดในช่วงเวลาที่กำหนด 2. **การคำนวณราคาสูงสุดและต่ำสุดที่คาดการณ์**: - **ราคาสูงสุดที่คาดการณ์**: คำนวณโดยการบวกค่า ATR กับราคาต่ำสุดของวันปัจจุบัน - **ราคาต่ำสุดที่คาดการณ์**: คำนวณโดยการลบค่า ATR จากราคาสูงสุดของวันปัจจุบัน 3. **การคำนวณสัดส่วน**: สคริปต์คำนวณสัดส่วนของวันที่ช่วงราคาต่อวัน (สูง - ต่ำ) มากกว่าหรือเท่ากับค่า ATR สัดส่วนนี้จะอัปเดตแบบเรียลไทม์เมื่อมีข้อมูลใหม่เข้ามา 4. **การแสดงผลในตาราง**: แทนที่จะแสดงป้ายกำกับบนแท่งเทียนแต่ละแท่ง สคริปต์จะแสดงราคาสูงสุดที่คาดการณ์ ราคาต่ำสุดที่คาดการณ์ และสัดส่วนที่คำนวณในตารางที่มุมขวาบนของกราฟ โดยสามารถปรับขนาดข้อความในตารางได้ 5. **การใช้สี**: สคริปต์จะเปลี่ยนสีของแท่งเทียนเป็นสีเหลืองหากช่วงราคาต่อวันมากกว่าหรือเท่ากับค่า ATR ทำให้สามารถระบุแท่งเทียนเหล่านี้ได้ง่ายขึ้น #### วิธีการใช้งาน - **ATR Period (`atrPeriod`)**: ปรับช่วงเวลาสำหรับการคำนวณ ATR โดยใช้พารามิเตอร์การป้อนค่า ค่าเริ่มต้นคือ 14 - **Table Size (`tableSizeOption`)**: เลือกขนาดข้อความที่แสดงในตาราง ตัวเลือกได้แก่ `tiny`, `small`, `normal`, `large`, และ `huge` - **ราคาสูงสุดและต่ำสุดที่คาดการณ์**: ใช้เส้นสีเขียวและสีแดงเพื่อระบุราคาที่เป็นเป้าหมายหรือระดับการหยุดขาดทุนสำหรับการซื้อขายของคุณ เส้นสีเขียวแสดงถึงราคาสูงสุดที่คาดการณ์และเส้นสีแดงแสดงถึงราคาต่ำสุดที่คาดการณ์ - **สัดส่วน**: ตารางที่มุมขวาบนของกราฟแสดงสัดส่วนของวันที่ช่วงราคาต่อวันมากกว่าหรือเท่ากับค่า ATR ซึ่งสามารถให้ข้อมูลเชิงลึกเกี่ยวกับความผันผวนของสินทรัพย์ - **การใช้สี**: แท่งเทียนสีเหลืองบ่งบอกถึงวันที่ช่วงราคาต่อวันมากกว่าหรือเท่ากับค่า ATR _____
Pine Script® indicator
by August_Supertrader
1
ATR Bands with Optional Risk/Reward Colors█ OVERVIEW This indicator projects ATR bands and, optionally, colors them based on a risk/reward advantage for those who trade breakouts/breakdowns using moving averages as partial or full exit points. █ DEFINITIONS ► True Range The True Range is a measure of the volatility of a financial asset and is defined as the maximum difference among one of the following values: - The high of the current period minus the low of the current period. - The absolute value of the high of the current period minus the closing price of the previous period. - The absolute value of the low of the current period minus the closing price of the previous period. ► Average True Range The Average True Range was developed by J. Welles Wilder Jr. and was introduced in his 1978 book titled "New Concepts in Technical Trading Systems". It is calculated as an average of the true range values over a certain number of periods (usually 14) and is commonly used to measure volatility and set stop-loss and profit targets (1). For example, if you are looking at a daily chart and you want to calculate the 14-day ATR, you would take the True Range of the previous 14 days, calculate their average, and this would be the ATR for that day. The process is then repeated every day to obtain a series of ATR values over time. The ATR can be smoothed using different methods, such as the Simple Moving Average (SMA), the Exponential Moving Average (EMA), or others, depending on the user's preferences or analysis needs. ► ATR Bands The ATR bands are created by adding or subtracting the ATR from a reference point (usually the closing price). This process generates bands around the central point that expand and contract based on market volatility, allowing traders to assess dynamic support and resistance levels and to adapt their trading strategies to current market conditions. █ INDICATOR ► ATR Bands The indicator provides all the essential parameters for calculating the ATR: period length, time frame, smoothing method, and multiplier. It is then possible to choose the reference point from which to create the bands. The most commonly used reference points are Open, High, Low, and Close, but you can also choose the commonly used candle averages: HL2, HLC3, HLCC4, OHLC4. Among these, there is also a less common "OC2", which represents the average of the candle body. Additionally, two parameters have been specifically created for this indicator: Open/Close and High/Low. With the "Open/Close" parameter, the upper band is calculated from the higher value between Open and Close, while the lower one is calculated from the lower value between Open and Close. In the case of bullish candles, therefore, the Close value is taken as the starting point for the upper band and the Open value for the lower one; conversely, in bearish candles, the Open value is used for the upper band and the Close value for the lower band. This setting can be useful for precautionally generating broader bands when trading with candlesticks like hammers or inverted hammers. The "High/Low" parameter calculates the upper band starting from the High and the lower band starting from the Low. Among all the available options, this one allows drawing the widest bands. Other possible options to improve the drawing of ATR bands, aligning them with the price action, are: • Doji Smoothing: When the current candle is a doji (having the same Open and Close price), the bands assume the values they had on the previous candle. This can be useful to avoid steep fluctuations of the bands themselves. • Extend to High/Low: Extends the bands to the High or Low values when they exceed the value of the band. • Round Last Cent: Expands the upper band by one cent if the price ends with x.x9, and the lower band if the price ends with x.x1. This function only works when the asset's tick is 0.01. ► Risk/Reward Advantage The indicator optionally colors the ATR bands after setting a breakpoint, one or two risk/reward ratios, and a series of moving averages. This function allows you to know in advance whether entering a trade can provide an advantage over the risk. The band is colored when the ratio between the distance from the break point to the band and the distance from the break point to the first available moving average reaches at least the set ratio value. It is possible to set two colorings, one for a minimum risk/reward ratio and one for an optimal risk/reward ratio. The break point can be chosen between High/Low (High in case of breakout, Low in case of breakdown) or Open/Close (on breakouts, Close with bullish candles or Open with bearish candles; on breakdowns, Close with bearish candles or Open with bullish candles). It is possible to choose up to 10 moving averages of various types, including the VWAP with the Anchor Period (2). Depending on the "Price to MA" setting, the bands can be individually or simultaneously colored. By selecting "Single Direction," the risk/reward calculation is performed only when all moving averages are above or below the break point, resulting in only one band being colored at a time. For this reason, when the break point is in between the moving averages, the calculation is not executed. This setting can be useful for strategies involving price movement from a level towards a series of specific moving averages (for example, in reversals starting from a certain level towards the VWAP with possible partial take profits on some previous moving averages, or simply in trend following towards one or more moving averages). Choosing "Both Directions" the risk/reward ratio is calculated based on the first available moving averages both above and below the price. This setting is useful for those who operate in range bound markets or simply take advantage of movements between moving averages. █ NOTE This script may not be suitable for scalping strategies that require immediate entries due to the inability to know the ATR of a candle in advance until its closure. Once the candle is closed, you should have time to place a stop or stop-limit order, so your strategy should not anticipate an immediate start with the next candle. Even more conveniently, if your strategy involves an entry on a pullback, you can place a limit order at the breakout level. (1) www.tradingview.com (2) For convenience, the code for the Anchor Period has been entirely copied from the VWAP code provided by TradingView.
Pine Script® indicator
by valpatrad