ATR Stop-Loss with Fibonacci Take-Profit

The ATR Stop-Loss with Fibonacci Take-Profit indicator provides dynamic risk management levels by combining Average True Range (ATR) volatility with Fibonacci extension ratios. This tool helps traders establish precise exit strategies that adapt to market conditions or lock into specific entry points for fixed trade management.

Usage

The indicator operates in two distinct modes to suit different trading styles:

Default Mode (Rolling Levels)

In this mode, the indicator continuously recalculates levels as new price action develops. The levels follow the current market volatility, making it an ideal tool for trailing a stop-loss into profit during an active trend.

• Evolving Levels: Lines update with each new bar based on the most recent ATR.
• Continuous Tracking: Uses price-tracking plots to maintain visibility across the chart.

Custom Anchor Mode (Fixed Levels)

Designed for trade execution, this mode allows you to select a specific bar (typically the entry bar). The indicator then fixes the stop-loss and take-profit calculations to that specific moment in time.

• Precision Entry: A blue line marks the entry point at the selected timestamp.
• Fixed Targets: Fibonacci projections remain stationary regardless of subsequent volatility changes.
• Auto-Termination: Level lines automatically terminate once price breaks through them, providing a clean visual record of hit targets.

Details

The indicator uses a multi-step calculation process to determine exit levels:

1. ATR Stop-Loss: Calculated by multiplying the ATR (Average True Range) by a user-defined multiplier. For Longs, this is subtracted from the entry; for Shorts, it is added.
2. Base Unit: The distance between the Entry Price and the Stop-Loss becomes the "1.0" unit for Fibonacci projections.
3. Take-Profit Extensions: Fibonacci ratios (ranging from 0.0 to 4.764) are applied to the base unit to project profit targets.

The tool also features multi-timeframe functionality, allowing you to execute on a lower timeframe while using volatility and target data from a higher timeframe for broader market context.

Settings

General

• Position Type: Toggle between Long and Short calculations.
• Timeframe: Choose the source timeframe for ATR and price calculations (e.g., Chart, 1h, 4h, Daily).

Custom Anchor

• Enable Custom Anchor: Switches the tool from rolling mode to fixed trade level mode.
• Anchor Date & Time: Sets the specific timestamp for the trade entry bar.

ATR Configuration

• ATR Length: The lookback period for volatility calculation.
• ATR Smoothing: Choose between RMA, SMA, EMA, or WMA smoothing methods.
• ATR Multiplier: Adjusts the distance of the stop-loss from the entry.

Fibonacci Levels

• Level Toggles: Individual checkboxes to show/hide 23 different Fibonacci levels ranging from 0.0 to 4.764.

FAQ

How do I access ATR Stop-Loss with Fibonacci Take-Profit?

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

Can I use this for trailing stops?

Yes, by disabling the "Custom Anchor" mode, the stop-loss level will roll with each new bar, allowing you to use it as a dynamic trailing stop based on ATR.

Why do some lines disappear in Anchor Mode?

In Custom Anchor Mode, the lines are programmed to terminate once the price has breached that specific level, helping you visualize exactly when and where targets or stops were hit.