ATR Stop-Loss & Targets

The ATR Stop-Loss & Targets indicator provides a comprehensive risk management and trend-following system designed to help traders define precise exit and target levels. By combining Average True Range (ATR) volatility measurements with Supertrend logic, this tool automates the calculation of stop-loss, take-profit, and trailing stop levels based on current market conditions.

Usage

The indicator can be used as a standalone risk management tool or integrated into a broader trend-following strategy. Traders can monitor the following features:

• Risk/Reward Levels: The tool automatically plots Stop-Loss (SL) and two Take-Profit (TP) levels based on a selected price source (Close, Open, or Manual) and ATR multipliers.
• Position Sizing: By inputting a "Max Loss Amount," the indicator calculates the recommended number of shares or units to trade based on the distance to the stop-loss.
• Trend Following: The built-in Supertrend logic identifies market direction (Buy/Sell), which dictates whether the SL and TP levels are projected for long or short positions.
• Visual Dashboard: An on-chart table displays real-time data including current signal status, specific price levels for SL/TP, current ATR value, and calculated position sizing.

Details

The script utilizes two distinct ATR calculations. The primary SL/TP logic uses a short-term ATR (default 5) to react quickly to recent volatility, with an option to use the previous day's value for more stable projections. The Supertrend logic uses a standard ATR (default 10) combined with a multiplier and the HL2 (median) price to define the trailing stop and trend direction. This dual-ATR approach ensures that the entry-based risk levels and the trend-following trailing stop operate independently for better flexibility.

Settings

ATR Stop Loss and Target Parameters

• Price Source: Choose between Close, Open, or a Manual price as the anchor for level calculations.
• ATR Source Candle: Select "Current" or "Previous" candle to determine which ATR value is used for multipliers.
• ATR Period: The lookback period for the primary volatility calculation.
• SL Multiplier (Risk): Multiplier applied to the ATR to set the Stop-Loss distance.
• TP Multiplier (Reward): Multiplier applied to the ATR to set the second Take-Profit target.
• Max Loss Amount ($): The dollar amount you are willing to risk on the trade for position size calculation.

Supertrend Parameters

• ATR Period (Supertrend): The lookback period specifically for the trend-following component.
• Supertrend Multiplier: Adjusts the sensitivity of the trend detection and trailing stop.
• Use RMA ATR: Toggles between RMA and SMA methods for the Supertrend's ATR calculation.

Visual & Dashboard Settings

• Show SL/TP Lines/Labels: Toggles the visibility of the projected price levels on the chart.
• Show Dashboard: Enables or disables the information table.
• Layout/Position: Customize the orientation (Vertical/Horizontal) and location of the dashboard.

FAQ

How do I use the "Manual Price" setting?

Select "Manual" in the Price Source dropdown and enter your desired entry price in the "Manual Price" field. The SL and TP levels will then be projected from that specific price point rather than current market prices.

Can I use this for both Long and Short trades?

Yes. The indicator automatically flips its calculations based on the detected Supertrend. If the trend is bullish, it shows Long SL/TP levels; if bearish, it shows Short SL/TP levels.

How do I access ATR Stop-Loss & Targets?

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