Elder SafeZone Stop

Elder SafeZone Stop trails positions at a distance set by the market's own counter-trend noise rather than an arbitrary offset — the first faithful library build of the SafeZone stop. It averages how far bars undercut the prior low across the lookback, multiplies that by the noise coefficient and hangs the result below the anchoring extreme; the short side mirrors the logic. The trail ratchets — a long stop rises or holds, never lowers.

How to Trade the Elder SafeZone Stop?

• Trailing exit: ride the move while the SafeZone Stop line holds, colored by the active side with a gradient fading from price to the level.
• Stop hit: the trigger price crossing the level in force ends the trail — Auto (stop & flip) trails the opposite side, Long only and Short only restart fresh.
• Sizing input: the dashboard's Stop Distance row gives the width in price and percent — a market-derived initial stop for position sizing.

It belongs on the stop-placement side of the risk and exit lineup.

Elder SafeZone Stop Settings

• Penetration Lookback (default 20): window over which penetrations are measured; Elder-style settings run 10 to 30 bars.
• Noise Coefficient (k) (default 2.5): multiple of the average penetration — near 2 trails tighter, near 3 gives trends room.
• Averaging Basis (default Penetrating bars only): divide by penetrating bars (Elder's primary form) or by the full window.
• Stop Anchor (default Previous bar): extreme the stop hangs from.
• Position Mode (default Auto (stop & flip)), Stop Trigger (default Close), Minimum Stop Distance (Ticks) (default 0): flip behavior, hit detection, optional floor.
• Display: Show Dashboard and Gradient Fill (on), Stop-Hit Markers (off).

Frequently Asked Questions

How is this different from the Chandelier Exit?

The Chandelier Exit hangs an ATR multiple from the highest point since entry, and ATR counts each bar's full range regardless of direction. Here the distance comes only from bars that pressed against the position, so a trend of big bars and rare undercuts produces a notably tighter trail.

What happens when the window holds no penetrations?

The build holds the last valid average instead of collapsing to zero, and the Minimum Stop Distance floor enforces a minimum width on top of that, including before any penetration has been measured.

Which alerts does the build include?

Two: Long Stop Hit when price crosses below the long trail, and Short Stop Hit when it crosses above the short one — each judged against the level in force during the bar.