ATR Trailing Stop by ceyhun

The ATR Trailing Stop by ceyhun indicator provides a dual-layered volatility-based tracking system designed to identify trend direction and potential reversal points using Average True Range (ATR) calculations.

Usage

The Usage section describes how the script can be used to identify market trends and manage trade entries or exits. The tool utilizes two distinct trailing stop lines—a Fast Trail and a Slow Trail—to generate signals and visualize market sentiment.

• Trend Identification: When the Fast Trail is above the Slow Trail, the market is considered to be in a bullish state. Conversely, when the Slow Trail is above the Fast Trail, the market is in a bearish state.
• Trade Signals: A "BUY" label is triggered when the Fast Trail crosses above the Slow Trail. A "SELL" label is triggered when the Fast Trail crosses below the Slow Trail.
• Bar Coloring: The indicator applies a multi-color scheme to price bars to indicate specific trend conditions:
  • Green: Strongly bullish (Fast > Slow, Close and Low are both above Slow).
  • Blue: Bullish but testing support (Fast > Slow, Close is above Slow, but Low has dipped below).
  • Red: Strongly bearish (Slow > Fast, Close and High are both below Slow).
  • Yellow: Bearish but testing resistance (Slow > Fast, Close is below Slow, but High has moved above).
• Information Panel: An on-chart dashboard provides real-time data including current profit percentages from the last signal, the number of candles since the signal, and the distance from the current price to the trailing stop (support/resistance).

Details

The script is based on the CDC ATR Trailing Stop V2.1 concept. It calculates two separate trailing stops based on different ATR periods and multipliers. The trailing stop logic ensures that the stop level only moves in the direction of the trend (upward during uptrends and downward during downtrends) until a price breach occurs, effectively "locking in" gains or defining risk. The visual output includes a shaded area between the two trailing lines to highlight the current trend strength and volatility corridor.

Settings

• Source: Determines the price data used for calculations (default is Close).
• Fast ATR period: Sets the lookback period for the Fast ATR calculation.
• Fast ATR multiplier: Sets the sensitivity of the Fast Trail; higher values result in a wider stop.
• Slow ATR period: Sets the lookback period for the Slow ATR calculation.
• Slow ATR multiplier: Sets the sensitivity of the Slow Trail; typically higher than the fast multiplier to act as a baseline trend.
• Paint color on chart: Toggles the custom bar coloring on or off.
• Plot Buy/Sell arrows: Toggles the visual BUY/SELL labels on the chart.
• Position: Adjusts the vertical positioning of the information panel based on historical highs.
• Info panel offset: Offsets the information panel horizontally into the future for better visibility.
• Info panel label size: Changes the font size of the information panel.
• Buy/Sell info panels: Toggles the visibility of the respective trend dashboards.

FAQ

How do I interpret the blue and yellow bars? Blue bars indicate a bullish trend where the price low is currently testing the trailing stop. Yellow bars indicate a bearish trend where the price high is testing the trailing stop resistance.

Can I set alerts for trade entries? Yes, the indicator includes built-in alert conditions for both Buy and Sell signals which can be configured via the TradingView Alert menu.

How can I access this indicator? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.