Trailing Stop Loss ATR + Alert

The Trailing Stop Loss ATR indicator provides a dynamic risk management solution by calculating stop-loss levels based on a percentage of the daily Average True Range (ATR). It is designed to help traders secure profits and manage exits effectively by adjusting the stop level in real-time according to market volatility and specific trade directions.

Usage

The Usage section describes how the script can be used to manage trade exits. To utilize the tool, a trader first identifies their trade direction (Long or Short) and specifies the entry price. The indicator then projects a trailing stop line on the chart based on the volatility of the asset.

Trade Direction and Session

Users must select the "Mode" (Long or Short) to align the trailing logic with their position. The indicator also utilizes a session setting to define the specific timeframe during which the trailing stop updates are most relevant, which is particularly useful for stock traders managing positions during active market hours.

ATR-Based Volatility Scaling

The stop loss distance is determined by a percentage of the Daily ATR. By using a higher timeframe volatility metric (Daily) on lower timeframe charts, the script provides a stop level that accounts for broader market movements, reducing the likelihood of being stopped out by minor intraday noise.

Information Panel

When enabled, an information panel appears on the chart providing real-time data regarding the current ATR value, the calculated stop-loss range in price units, and the percentage setting being applied.

Details

The script calculates the trailing stop by fetching the 14-period ATR from the daily timeframe using request.security. This ensures the volatility measurement is consistent regardless of the chart's current timeframe.

The logic for the trailing stop is directional:

• Short Mode: The trailing stop remains above the price. It updates downward if the price closes lower than the previous open or if the entry price is breached, but it is programmed to never move upward, effectively "locking in" the downward movement.
• Long Mode: The trailing stop remains below the price. It updates upward as price moves favorably but is restricted from moving downward to protect accumulated gains.

The indicator includes a cross-detection mechanism that triggers an alert when the price intersects the trailing stop line, signaling a potential exit point.

Settings

• ACTIVATE TSL: Toggles the visibility of the trailing stop loss line on the chart.
• ACTIVE INFO PANEL: Enables or disables the on-chart text labels showing ATR and TSL metrics.
• Mode: Sets the trade direction to either "Long" or "Short" to determine the trailing logic.
• Session: Defines the time range (e.g., "0935-1045") during which the trailing stop calculations are active.
• % Atr Day: Adjusts the distance of the stop loss as a percentage of the daily ATR (e.g., 10.0 equals 10% of the daily ATR).
• Buy-Sell: The source price used for the initial stop loss calculation, typically set to the entry price or "Close."

FAQ

How do I adjust the sensitivity of the trailing stop? You can adjust the sensitivity by changing the "% Atr Day" input. A higher percentage creates a wider stop for volatile assets, while a lower percentage creates a tighter trailing stop for scalp or momentum trades.

Does this indicator work on all timeframes? Yes, the indicator can be used on any intraday timeframe. However, it specifically references the Daily ATR to calculate the stop distance, making it most effective for traders who want their intraday exits to be informed by daily volatility.

How can I get access to Trailing Stop Loss ATR? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.