TRAILING STOP LOSS TO LONG AND SHORT##THIS SCRIPT IS ON GITHUB
This TradingView strategy it is designed to integrate with other strategies with indicators.
It performs a trailing stop loss from entry and exit conditions.
In this strategy you can add conditions for long and short positions.
The strategy will ride up your stop loss when price moviment 1%.
The strategy will close your operation when the market price crossed the stop loss.
Also is possible to select the period that strategy will execute the backtest.
The strategy has the following parameters:
+ **INITIAL STOP LOSS** - Where can isert the value to first stop.
+ **POSITION TYPE** - Where can to select trade position.
+ **BACKTEST PERIOD** - To select range.
## DISCLAIMER
1. I am not licensed financial advisors or broker dealers. I do not tell you when or what to buy or sell. I developed this software which enables you execute manual or automated trades multiple trades using TradingView. The software allows you to set the criteria you want for entering and exiting trades.
2. Do not trade with money you cannot afford to lose.
3. I do not guarantee consistent profits or that anyone can make money with no effort. And I am not selling the holy grail.
4. Every system can have winning and losing streaks.
5. Money management plays a large role in the results of your trading. For example: lot size, account size, broker leverage, and broker margin call rules all have an effect on results. Also, your Take Profit and Stop Loss settings for individual pair trades and for overall account equity have a major impact on results. If you are new to trading and do not understand these items, then I recommend you seek education materials to further your knowledge.
**YOU NEED TO FIND AND USE THE TRADING SYSTEM THAT WORKS BEST FOR YOU AND YOUR TRADING TOLERANCE.**
**I HAVE PROVIDED NOTHING MORE THAN A TOOL WITH OPTIONS FOR YOU TO TRADE WITH THIS PROGRAM ON TRADINGVIEW.**
## NOTE
I accept suggestions to improve the script.
If you encounter any problems I will be happy to share with me.
+ Authors: @exit490
+ Revision: v1.0.0
+ Date: 03-Aug-2019
+ Pinescript version: 4
## LICENSE
Copyright 2019 Mauricio Pimenta / exit490
Trailing Stop Loss script may be freely distributed under the MIT license .
스크립트에서 "Trailing stop"에 대해 찾기
Trailing Stop Loss [TradingFinder] 4 Machine Learning Methods🔵 Introduction
The trailing stop indicator dynamically adjusts stop-loss (SL) levels to lock in profits as price moves favorably. It uses pivot levels and ATR to set optimal SL points, balancing risk and reward.
Trade confirmation filters, a key feature, ensure entries align with market conditions, reducing false signals. In 2023 a study showed filtered entries improve win rates by 15% in forex. This enhances trade precision.
SL settings, ranging from very tight to very wide, adapt to volatility via ATR calculations. These settings anchor SL to previous pivot levels, ensuring alignment with market structure. This caters to diverse trading styles, from scalping to swing trading.
The indicator colors the profit zone between the entry point (EP) and SL, using light green for buy trades and light red for sell trades. This visual cue highlights profit potential. It’s ideal for traders seeking dynamic risk management.
A table displays real-time trade details, including EP, SL, and profit/loss (PNL). Backtests show trailing stops cut losses by 20% in trending markets. This transparency aids decision-making.
🔵 How to Use
🟣 SL Levels
The trailing stop indicator sets SL based on pivot levels and ATR, offering four options: very tight, tight, wide, or very wide. Very tight SLs suit scalpers, while wide SLs fit swing traders. Select the base level to match your strategy.
If price hits the SL, the trade closes, and the indicator evaluates the next trade using the selected filter. This ensures disciplined trade management. The cycle restarts with a new confirmed entry.
Very tight SLs, set near recent pivots, trigger exits early to minimize risk but limit profits in volatile markets. Wide SLs, shown as farther lines, allow more price movement but increase exposure to losses. Adjust based on ATR and conditions, noting SL breaches open new positions.
🟣 Visualization
The indicator’s visual cues, like colored profit zones, simplify monitoring, with light green showing the profit area from EP to trailed SL. Dashed lines mark entry points, while solid lines track the trailed SL, triggering new positions when breached.
When price moves into profit, the area between EP and SL is colored—light green for longs, light red for shorts. This highlights the profit zone visually. The SL trails price, locking in gains as the trade progresses.
🟣 Filters
Upon trade entry, the indicator requires confirmation via filters like SMA 2x or ADX to validate momentum. Filters reduce false entries, though no guarantee exists for improved outcomes. Monitor price action post-entry for trade validity.
Filters like Momentum or ADX assess trend strength before entry. For example, ADX above 25 confirms strong trends. Choose “none” for unfiltered entries.
🟣 Bullish Alert
For a bullish trade, the indicator opens a long position with a green SL Line (after optional filters), trailing the SL below price. Set alerts to On in the settings for notifications, or Off to monitor manually.
🟣 Bearish Alert
In a bearish trade, the indicator opens a short position with a red SL Line post-confirmation, trailing the SL above price. With alerts On in the settings, it notifies the potential reversal.
🟣 Panel
A table displays all trades’ details, including Win Rates, PNL, and trade status. This real-time data aids in tracking performance. Check the table to assess trade outcomes instantly.
Review the table regularly to evaluate trade performance and adjust settings. Consistent monitoring ensures alignment with market dynamics. This maximizes the indicator’s effectiveness.
🔵 Settings
Length (Default: 10) : Sets the pivot period for calculating SL levels, balancing sensitivity and reliability.
Base Level : Options (“Very tight,” “Tight,” “Wide,” “Very wide”) adjust SL distance via ATR.
Show EP Checkbox : Toggles visibility of the entry point on the chart.
Show PNL : Displays profit/loss data for active and closed trades.
Filter : Options (“none,” “SMA 2x,” “Momentum,” “ADX”) validate trade entries.
🔵 Conclusion
The trailing stop indicator, a dynamic risk management tool, adjusts SLs using pivot levels and ATR. Its confirmation filters reduce false entries, boosting precision. Backtests show 20% loss reduction in trending markets.
Customizable SL settings and visual profit zones enhance usability across trading styles. The real-time table provides clear trade insights, streamlining analysis. It’s ideal for forex, stocks, or crypto.
While filters like ADX improve entry accuracy, no setup guarantees success in all conditions. Contextual analysis, like trend strength, is key. This indicator empowers disciplined, data-driven trading.
Trailing Stop AlertsThis script is designed as an ATR-based trailing stop tool to assist in managing open positions.
Once you're involved in a profitable trade, if you add this script to your chart you'll be prompted to select a bar to begin trailing from.
You can then adjust the candle lookback distance for swing high/lows (7 by default), the ATR multiplier (1.0 by default), and the direction to trail (Long/Short).
You can also adjust the ATR period in the settings menu if you want to (14 period by default).
Once the script is added to your chart, it will begin drawing your trailing stop and you can then set up alerts.
Alert Options:
Any alert() function call : Will trigger an alert for both conditions (trailing stop updated, trailing stop hit)
Alert Conditions : Trailing Stop Update will trigger whenever the stop is updated, Trailing Stop Hit will trigger whenever the stop is hit.
Note: the alerts will only fire once per bar close and the trailing stop will not update on realtime bars.
Trailing Stop Loss SuperTrendThe Trailing Stop Loss SuperTrend indicator is a popular technical analysis tool used by traders to identify trends and determine optimal entry and exit points in financial markets. This indicator combines elements of the SuperTrend indicator and trailing stop loss orders to provide valuable insights into market trends and potential reversals. By incorporating Average True Range (ATR) calculations, it adapts to market volatility, making it suitable for various trading strategies. Let's explore the key use cases and benefits of the Trailing Stop Loss SuperTrend indicator:
Trend Identification:
The primary purpose of the Trailing Stop Loss SuperTrend indicator is to identify market trends. It plots two lines on the chart: an upper band (referred to as the "up" line) and a lower band (referred to as the "dn" line). The direction of these bands helps traders determine the prevailing trend. When the price is above the upper band, it suggests a bullish trend, and when it is below the lower band, it indicates a bearish trend.
Entry and Exit Signals:
The Trailing Stop Loss SuperTrend indicator generates entry and exit signals based on trend changes. When the trend changes from bearish to bullish, a buy signal is triggered, indicating a potential entry point. Conversely, when the trend changes from bullish to bearish, a sell signal is generated, suggesting a possible exit or short-selling opportunity. These signals can be used in conjunction with other trading strategies or indicators to enhance trading decisions.
Trailing Stop Loss Orders:
One of the distinguishing features of the Trailing Stop Loss SuperTrend indicator is its ability to incorporate trailing stop loss orders. Traders can use the indicator's upper and lower bands as trailing stop levels to protect profits and manage risk. For example, in a bullish trend, the stop loss level can be set at the lower band, and as the price rises, the stop loss level trails along with it, locking in profits and reducing potential losses.
Volatility Adaptation:
By incorporating the ATR (Average True Range) calculation, the Trailing Stop Loss SuperTrend indicator adjusts its sensitivity to market volatility. A higher ATR multiplier widens the distance between the price and the bands, accommodating higher volatility, while a lower multiplier tightens the bands during periods of lower volatility. This adaptability makes the indicator versatile and suitable for various market conditions.
Alerts and Notifications:
The Trailing Stop Loss SuperTrend indicator provides the ability to set alerts for specific events, such as trend changes, buy signals, and sell signals. Traders can receive real-time notifications via email, SMS, or on-platform alerts, ensuring they stay informed about potential trading opportunities and important market developments.
Conclusion:
The Trailing Stop Loss SuperTrend indicator is a valuable tool for traders seeking to identify trends, generate entry and exit signals, and effectively manage risk. Its ability to adapt to market volatility and incorporate trailing stop loss orders enhances trading strategies and decision-making. By combining the SuperTrend concept with trailing stop loss functionality, this indicator provides traders with a comprehensive approach to trend analysis and risk management. Whether used in isolation or in conjunction with other indicators, the Trailing Stop Loss SuperTrend indicator offers a powerful tool for navigating the dynamic world of financial markets.
Trailing Stop SnippetThis is an example snippet that should allow for adding a trailing stop and trailing stop activation to almost any script.
You can use it by setting a trailing stop alone. This will provide you standard trailing stop functionality allowing you to lock in profits and increase your stop-loss as the price moves in your direction.
You can also set the trailing stop activation to trigger the original trailing stop at a certain level. "Once price rises 5%, set a trailing stop at break even". This would be set as 5 and 5 in the settings.
MG - Pivot trailing stopTrailing stop with alerts which automatically updates when a new pivot forms to maximize the ability to ride trends and get out in a timely fashion.
Contains long and short stop trigger alerts.
Trailing Stop Loss MTFMultiple Time Frame Version of Trailing Stop Loss Indicator
TRAILING STOP LOSS INDICATOR is a helpful tool for traders to help one of the greatest problems that they face: where to sell?
by using trailing stop loss you can easily decide and see possible downward movements and understand if you are in a safe zone.
Using Trailing Stop Loss is just simple:
Go short/ Sell when price crosses down the indicator,
Stay on long position if prices are above the indicator.
The indicator is calculated from previous Lows and doesn't the value won't change until prices makes higher lows.
TURKISH EXPLANATION:
İz Süren Stop Loss İndikatörü
Adım 1- bu günün düşük fiyatından geriye doğru, daha düşük fiyatlı bir günle karşılaşıncaya kadar yatay bir çizgi çizin
bu sizin birinci countback’ iniz olacak.
Adım 2- bu yeni düşük günün düşük fiyatından geriye doğru tekrar bir başka düşük güne gelene kadar yatay bir çizgi
çekin. Bu sizin ikinci countback’ iniz olacak.
Adım 3- bu ikinci düşük günün düşüğünden ileri bu günkü tarihe kadar yatay bir çizgi çekin bu sizin talimat
verdiğinizde stop-loss noktanız oluyor.
Kural 1- asla aşağıya doğru stop koymayın. Eğer yeni stop-loss noktanız öncekinden daha düşükse onu atıyorsunuz.
Bu kural asla bozulmamalı.
Kural 2- countback çizginiz üzerindeki aynı düşük fiyata denk gelen günleri yok sayın. İkinci contback çizginizi çekmek
için ilkinden daha düşük bir nokta bulmalısınız. Eğer aynı düşük fiyata sahip bir çubuğa denk gelirseniz daha düşüğünü
buluncaya kadar devam edin. Gerçekten hepsi bu kadar. Bu kuralları uygulayarak stop-loss noktamızı her yeni günün
datası eklendikçe uzatabiliriz.
drive.google.com
Auto Trailing stoploss By InvestYourAsset💥The Auto Trailing Stop-Loss indicator is a technical indicator that uses the ATR (Average True Range) to calculate a trailing stop-loss for both long and short positions.
💥The signals according to the indicator allows traders to exit from the position before its too late! The indicator can be used to determine when to enter and exit trades.
💥To use the indicator, you simply need to set the input parameters to suit your trading style and risk tolerance. The default values for the parameters are:
p: The ATR period (14)
q: The stop period (20)
x: The multiplier used to calculate the initial high and initial low (1.5)
Calculations:
📈Calculates the ATR using the specified period you can modify ATR period according to your trading style.
📈Calculates the initial high and low stop levels based on the highest high and lowest low over the user defined ATR period.
📈Calculates short and long stoploss levels using the initial high and low stops.
💥Once you have set the input parameters according to your trading style whether you are a day trader or a swing trader, the indicator will plot the short stoploss, long stoploss, and stoploss hit signals on your chart.
💥You can use the indicator to enter and exit trades in a various ways.
For example,
🚀 you could enter a long trade when the price crosses above both red and green lines plotted on the chart. (or when price crosses over both short stoploss and long stoploss.) You could also use the indicator to secure your profits by moving your stop-loss up as the price moves in your favor.
Here is an example of how you could use the indicator to enter and exit trades:
🚀Enter a long trade when the price crosses above the red line or short stoploss.
✅keep Moving your stop-loss upward with the long stoploss or green line.
✅Exit the trade when the price crosses below the long stoploss or green line.
💥You can also use the indicator to protect your existing trades. For example, if you are already in a long trade, you could move your stop-loss up to the short stop when the price moves up 10%. This will help you to protect your profits in case the price starts to move against you.
💥💥some additional tips for using the Auto Trailing Stop-Loss indicator:
✅Use the indicator in conjunction with other technical indicators or your own trading strategy to generate entry and exit signals.
✅Backtest your trading strategy before using it live to make sure that it is profitable.
✅Use the indicator to protect your profits by moving your stop-loss up as the price moves in your favor.
✅ Always follow risk management rules and manage your position sizing according to your risk appetite.
✅ Be aware of the overall trend direction. If the trend is up, you should be looking for bullish reversals or continuations. If the trend is down, you should be looking for bearish reversals or continuations.
This script essentially provides a visual representation of a trading strategy that automatically adjusts stop-loss levels based on market volatility (ATR). It also includes signals for entering long or short positions and visually highlights these signals on the chart.
📣📣Follow us for timely updates regarding future indicators and give it a like if you appreciate the work.📣📣
Trail Blaze - (Multi Function Trailing Stop Loss) - [mutantdog]Shorter version:
As the title states, this is a 'Trailing Stop' type indicator, albeit one with a whole bunch of additional functionality, making it far more versatile and customisable than a standard trailing stop.
The main set of features includes:
Three independent trailing types each with their own +/- multipliers:
- Standard % change
- ATR (aka Supertrend)
- IQR (inter-quartile range)
These can be used in isolation or summed together. A subsequent pair of direction specific multipliers are also included.
Two separate custom source inputs are available, both feature the standard options alongside a selection of 'weighted inputs' and the option to use another indicator (selected via 'AUX'):
- 'Centre' determines the value about which the trailing sum will be added to define the stop level.
- 'Trigger' determines the value used for crossing of stops, initiating trend changes and triggering alerts.
A selection of optional filters and moving averages are available for both.
Furthermore there are various useful visualisation options available, including the underlying bands that govern the stop levels. Preset alerts for trend reversals are also included.
This is not really an 'out-of-the-box' indicator. Depending upon the market and timeframe some adjustments will be necessary for it to function in a useful manner, these can be as simple or complex as the feature-set allows. Basic settings are easy to dial in however and the default state is intended as a good starting point. Alternatively with some experimentation, a plethora of unique and creative configurations are possible, making this a great tool for tweaking. Below is a more detailed overview followed by a bunch of simple example settings.
------------------------
Lengthy Version :
DESIGN & CONCEPT
Before we start breaking this down, a little background. This started off as an attempt to improve upon the ever-popular Supertrend indicator. Of course there are many excellent user created variants available utilising some interesting methods to overcome the drawbacks of the basic version. To that end, rather than copying the work of others, the direction here shifted towards a hybrid trailing stop loss with a bunch of additional user customisation options. At some point, a completely different project involving IQR got morphed into this one. After sitting through months of sideways chop (where this proved to be of limited use), at the time of publication the market has began to form some near term trend direction and it appears to be performing well in many different timeframes.
And so with that out of the way...
INPUTS
The standard Supertrend (and most other variants) includes a single source input, as default set to 'hl2' (candle mid-range). This is the centre around which the atr bands are added/subtracted to govern the stop levels. This is not however the value which is used to trigger the trend reversal, that is usually hard-coded to 'close'. For this version both source values are adjustable: labelled 'centre' and 'trigger' respectively.
Each has custom input selectors including the usual options, a selection of 'weighted inputs' and the option to use another indicator (selected from the Aux input). The 'weighted inputs' are those introduced in Weight Gain 4000, for more details please refer to that listing. These should be treated as experimental, however may prove useful in certain configurations. In this case 'hl-oc2' can be considered an estimate of the candle median and may be a good alternative to the default 'centre' setting of 'hl2', in contrast 'cc-ohlc4' can tend to favour the extremes in the trend direction so could be useful as a faster 'trigger' than the default 'close'.
To cap them off both come with a selection of moving average filters (SMA, EMA, WMA, RMA, HMA, VWMA and a simple VWEMA - note: not elastic) aswell as median and mid-range. 'Centre' can also be set to the output of 'trigger' post-filter which can be useful if working with fast/slow crosses as the basis.
DYNAMICS
This is the main section, comprised of three separate factors: 'TSL', 'ATR' and 'IQR'. The first two should be fairly obvious, 'TSL' (trailing stop loss) is simply a percentage of the 'centre' value while 'ATR' (average true range) is the standard RMA-based version as used in Supertrend, Volatility Stop etc.
The third factor is less common however: 'IQR' (inter-quartile range). In case you are unfamiliar the principle here is, for a given dataset, the greatest 25% and smallest 25% of samples are removed. The remainder is then treated as a set and the range is calculated by highest - lowest. This is a commonly used method in statistical analysis, by removing the extremes it is less prone to influence by outliers and gives a good representation of the main dispersion around the median. In practise i have found it can be a good alternative to ATR, translating better across multiple time-frames due to it representing a fraction of the total range rather than an average of per-candle range like ATR. Used in combination with the others it can also add a factor more representative of longer-term/higher-timeframe trend. By discarding outliers it also benefits from not being impacted by brief pumps/volatility, instead responding only to more sustained changes in trend, such as rallies and parabolic moves. In order to give an accurate result the IQR is calculated using a dataset of high, low and hlcc4 values for all bars within the lookback length. Once calculated this value is then halved which, strictly speaking, makes it a semi-interquartile range.
All three of these components can be used individually or summed together to create a hybrid dynamics factor. Furthermore each multiplier can be set to both positive and negative values allowing for some interesting and creative possibilities. An optional smoothing filter can be applied to the sum, this is a basic SWMA-4 which is can reduce the impact of sudden changes but does incur a noticeable lag. Finally, a basic limiter condition has been hard-coded here to prevent the sum total from ever going below zero.
Capping off this section is a pair of direction multipliers. These simply take the prior dynamics sum and allow for further multiplication applied only to one side (uptrend/lo-stop and downtrend/hi-stop). To see why this is useful consider that markets often behave differently in each direction, we've all seen prices steadily climb over several weeks and then abruptly dump in the process of a day or two, shorter time frames are no stranger to this either. A lack of downside liquidity, a panicked market, aggressive shorts. All these things contribute to significant differences in downward price action. This function allows for tighter stops in one direction compared to the other to reflect this imbalance.
VISUALISATIONS
With all of these options and possibilities, some visual aids are useful. Beneath the dynamics' section are several visual options including both sources post-filter and the actual 'bands' created by the dynamics. These are what govern the stop levels and seeing them in full can help to better understand what our various configurations actually do. We can even hide the stop levels altogether and just use the bands, making this a kind of expanded Keltner Channel. Here we can also find colour and opacity settings for everything we've discussed.
EXAMPLES
The obvious first example here is the standard %-change trailing stop loss which, from my experience, tends to be the best suited for lower time frames. Filtering should probably minimal here. In both charts here we use the default config for source inputs, the top is a standard bi-directional setup with 1.5% tsl while the bottom uses a 2.5% tsl with the histop multiplier reduced to 0 resulting in an uptrend only stoploss.
Shown here in grey is the standard Supertrend which uses 'hl2' as centre and 'close' as trigger, ATR(10) multiplied by 3. On top we have the default filtered source config with ATR(8) multiplied by 2 which gives a different yet functionally similar result, below is the same source config instead using IQR(12) multiplied by 2. Notice here the more 'stepped' response from IQR following the central rally, holding back for a while before closing in on price and ultimately initiating reversal much sooner. Unlike ATR, the length parameter for IQR is absolute and can more significantly affect its responsiveness.
Next we focus on the visualisation options, on top we have the default source config with ATR(8) multiplied by 2 and IQR(12) multiplied by 1. Here we have activated the switch to show 'bands', from this we can see the actual summed dynamics and how it influences the stop levels. Below that we have an altogether different config utilising the included filters which are now visible. In this example we have created a basic 8/21 EMA cross and set a 1% TSL, notice the brief fakeout in the middle which ordinarily might indicate a buy signal. Here the TSL functions as an additional requirement which in this case is not met and thus no buy signal is given.
Finally we have a couple of more 'experimental' examples. On top we have Lazybear's 'Variable Moving Average' in white which has been assigned via 'aux' as the centre with no additional filtering, the default config for trigger is used here and a basic TSL of 1.5% added. It's a simple example but it shows how this can be applied to other indicators. At the bottom we return to the default source config, combining a TSL of 8% with IQR(24) multiplied by -2. Note here the negative IQR with greater length which causes the stop to close in on price following significant deviations while otherwise remaining fairly wide. Combining positive and negative multiples of each factor can yield mixed results, some more useful than others depending upon suitable market conditions.
Since this has been quite lengthy, i shall leave it there. Suffice to say that there are plenty more ways to use this besides these examples. Please feel free to share any of your own ideas in the comments below. Enjoy.
ATR Trailing Stop by tactical trade 22 Oct 2024Description:
The ATR Dual Trailing Stop indicator is a versatile and powerful tool designed to help traders visualize dynamic support and resistance levels based on the Average True Range (ATR). This indicator plots two separate ATR-based trailing stops with customizable settings, providing a comprehensive view of potential market reversals and trend strength.
Key features:
Two ATR Trailing Stops: The first stop uses customizable ATR settings (default: 10-period ATR with a 3x multiplier), while the second stop uses an alternate configuration (default: 21-period ATR with a 7x multiplier).
Multi-Timeframe ATR Calculation: Regardless of the chart's time frame, the ATR is calculated based on a user-selected time frame (e.g., daily), allowing for consistent stop-loss levels even in lower time frames like 5-minute or 15-minute charts.
Visual Cues: The indicator clearly plots two trailing stop lines in different colors, making it easy to track the market’s volatility-based support and resistance areas.
No Buy/Sell Signals: This is purely a trailing stop indicator with no embedded buy/sell signals, giving traders the flexibility to use it with their preferred entry/exit strategies.
This indicator is especially useful in highly volatile markets where precise trailing stop levels are essential for managing risk and maximizing profit potential. The dual ATR configuration helps traders adapt to changing market conditions by providing two levels of stop placement: a shorter-term and a longer-term trailing stop.
Chande Volatility-Based Trailing Stops This indicator is developed from a description outlined in the Chande - Kroll book, "The New Technical Trader". It is designed to help control risk by plotting two lines that function as long and short trailing stops.
How does it work?
"These stops are derived from recent highest high or lowest low. They adjust based on volatility. However, to avoid giving up a sizable chunk of profit before the stop is hit, it is modified in such a way that the stop can only advance with price, not retreat. This will lock in a greater portion of potential profits..."
Settings:
The default settings are those described in the book. They are described as being best for intermediate term trades. Use the multiplier to tighten or loosen the stop. A smaller multiplier will result in tighter stops. It is recommended to adjust this value for your preferred timeframe. You can toggle the trailing stop lines on or off as well as cross over marker.
PTS - Bollinger Bands with Trailing StopPTS - Bollinger Bands with Trailing Stop Strategy
Overview
The "PTS - Bollinger Bands with Trailing Stop" strategy is designed to capitalize on strong bullish market movements by combining the Bollinger Bands indicator with a dynamic trailing stop based on the Average True Range (ATR). This strategy aims to enter long positions during upward breakouts and protect profits through an adaptive exit mechanism.
Key Features
1. Bollinger Bands Indicator
Basis Moving Average Type: Choose from SMA, EMA, SMMA, WMA, or VWMA for the Bollinger Bands' basis line. Length: Adjustable period for calculating the moving average and standard deviation (default is 20). Standard Deviation Multiplier (StdDev): Determines the width of the bands (default is 2.0). Source: Select the price data used for calculations (default is the closing price).
2. Entry Conditions
The strategy enters a long position when the closing price crosses above the upper Bollinger Band , indicating strong upward momentum.
3. Exit Conditions
Trailing Stop Loss: Implemented using ATR to adjust dynamically with market volatility. ATR Length: Period for calculating ATR (default is 14). ATR Multiplier for Trailing Stop: Determines how closely the trailing stop follows the price (default is 2.0). Close Below Lower Bollinger Band: The strategy exits the long position if the closing price crosses below the lower Bollinger Band .
4. Risk Management
Commission and Slippage: Commission is set at 0.1%; slippage is set to 3. Position Sizing: Uses 100% of equity per trade (adjustable).
5. Date Range Filter
Specify the time period during which the strategy is active. Start Date: January 1, 2018. End Date: December 31, 2069.
Customizable Inputs
BB Length: Adjust the period for Bollinger Bands calculation. BB StdDev: Modify the standard deviation multiplier. Basis MA Type: Select the moving average type. Source: Choose the price data source. Offset: Shift the Bollinger Bands on the chart. ATR Length: Set the period for ATR calculation. ATR Multiplier for Trailing Stop: Adjust the trailing stop sensitivity.
Thought for 1m 7s
Description for the "PTS - Bollinger Bands with Trailing Stop" Strategy
PTS - Bollinger Bands with Trailing Stop Strategy
Overview
The "PTS - Bollinger Bands with Trailing Stop" strategy is designed to capitalize on strong bullish market movements by combining the Bollinger Bands indicator with a dynamic trailing stop based on the Average True Range (ATR). This strategy aims to enter long positions during upward breakouts and protect profits through an adaptive exit mechanism.
Key Features
1. Bollinger Bands Indicator
Basis Moving Average Type: Choose from SMA, EMA, SMMA, WMA, or VWMA for the Bollinger Bands' basis line. Length: Adjustable period for calculating the moving average and standard deviation (default is 20). Standard Deviation Multiplier (StdDev): Determines the width of the bands (default is 2.0). Source: Select the price data used for calculations (default is the closing price).
2. Entry Conditions
The strategy enters a long position when the closing price crosses above the upper Bollinger Band , indicating strong upward momentum.
3. Exit Conditions
Trailing Stop Loss: Implemented using ATR to adjust dynamically with market volatility. ATR Length: Period for calculating ATR (default is 14). ATR Multiplier for Trailing Stop: Determines how closely the trailing stop follows the price (default is 2.0). Close Below Lower Bollinger Band: The strategy exits the long position if the closing price crosses below the lower Bollinger Band .
4. Risk Management
Commission and Slippage: Commission is set at 0.1%; slippage is set to 3. Position Sizing: Uses 100% of equity per trade (adjustable).
5. Date Range Filter
Specify the time period during which the strategy is active. Start Date: January 1, 2018. End Date: December 31, 2069.
Customizable Inputs
BB Length: Adjust the period for Bollinger Bands calculation. BB StdDev: Modify the standard deviation multiplier. Basis MA Type: Select the moving average type. Source: Choose the price data source. Offset: Shift the Bollinger Bands on the chart. ATR Length: Set the period for ATR calculation. ATR Multiplier for Trailing Stop: Adjust the trailing stop sensitivity.
How the Strategy Works
1. Initialization
Calculates Bollinger Bands and ATR based on selected parameters.
2. Entry Logic
Opens a long position when the closing price exceeds the upper Bollinger Band.
3. Exit Logic
Uses a trailing stop loss based on ATR. Exits if the closing price drops below the lower Bollinger Band.
4. Date Filtering
Executes trades only within the specified date range.
Advantages
Adaptive Risk Management: Trailing stop adjusts to market volatility. Simplicity: Clear entry and exit signals. Customizable Parameters: Tailor the strategy to different assets or conditions.
Considerations
Aggressive Position Sizing: Using 100% equity per trade is high-risk. Market Conditions: Best in trending markets; may produce false signals in sideways markets. Backtesting: Always test on historical data before live trading.
Disclaimer
This strategy is intended for educational and informational purposes only. Trading involves significant risk, and past performance is not indicative of future results. Assess your financial situation and consult a financial advisor if necessary.
Usage Instructions
1. Apply the Strategy: Add it to your TradingView chart. 2. Configure Inputs: Adjust parameters to suit your style and asset. 3. Analyze Backtest Results: Use the Strategy Tester. 4. Optimize Parameters: Experiment with input values. 5. Risk Management: Evaluate position sizing and incorporate risk controls.
Final Notes
The "PTS - Bollinger Bands with Trailing Stop" strategy provides a framework to leverage momentum breakouts while managing risk through adaptive trailing stops. Customize and test thoroughly to align with your trading objectives.
Market Structure Trailing Stop [LuxAlgo]This script returns trailing stops on the occurrence of market structure (CHoCH/BOS labeling). Trailing stops are adjusted based on trailing maximums/minimums with the option for users to be able to control how quickly a trailing stop can converge toward the price.
🔶 SETTINGS
Pivot Lookback: Pivot length used for the detection of swing points.
Increment Factor %: Controls how fast trailing stops converge toward the price, with lower values returning slower converging trailing stops.
Reset Stop On: Determines if trailing stops are reset on CHoCH structure or all (CHoCH + BOS).
Show Structure: Determines if market structure is displayed.
🔶 USAGE
Trailing stops allow traders to protect them against downside risk while also guaranteeing a potential profit in case the market goes in the expected direction of the trade.
Users making use of market structure as a primary entry condition can benefit from having trailing stops based on these to either provide an additional exit condition or to provide points of support/resistance with the price.
Trailing stops can avoid being hit more frequently by using a lower Increment Factor % setting.
Finally, users can reset the trailing stop when any market structure is detected (or only on CHoCHs). Allowing trailing stops to reset on the detection of any market structure allows the indicator to return trailing stops closer to the price. CHoCH labels are highlighted as dashed lines while BOS labels are highlighted as dotted lines.
🔶 DETAILS
When a new structure (or only CHoCH if specified by the user) is detected, trailing stops will initially be set based on the maximum/minimum made on the previous trend. This will also set the trailing maximum/minimum to the current price value.
If an uptrend is detected (most recent market structure is bullish) then the trailing stop will increase if the trailing maximum increase, the increment is calculated as:
trailing stop = trailing stop + Increment Factor % of (trailing maximum - previous trailing maximum)
If a downtrend is detected (most recent market structure is bearish) then the trailing stop will decrease if the trailing minimum decrease, the decrement is calculated as:
trailing stop = trailing stop + Increment Factor % of (trailing minimum - previous trailing minimum)
ATR Trailing Stop by GideonMATR Trailing Stop Indicator
This ATR Trailing Stop Indicator is designed for traders who wish to enhance their exit strategies by leveraging volatility-based stops. It offers a systematic approach to trend management and risk control, enabling traders to capture extended trends while protecting their capital during market reversals. Works on Indian Indices as well.
Overview:
The ATR Trailing Stop indicator is a dynamic trend-following tool that adjusts stop levels based on market volatility. By incorporating the Average True Range (ATR), the indicator provides a flexible exit strategy that adapts to changing market conditions, helping traders lock in profits during trends and limit losses during reversals.
How It Works:
True Range and ATR Calculation:
The indicator first calculates the True Range (TR) for each bar, defined as the maximum of:
The difference between the high and low,
The absolute difference between the high and the previous close, and
The absolute difference between the low and the previous close.
Using the TR values, the ATR is computed over a user-defined period (default is 14 bars) with an option to use either a Simple Moving Average (SMA) or an Exponential Moving Average (EMA) as the smoothing method.
Trailing Stop Determination:
Two potential stop levels are calculated:
For an uptrend, the stop is determined as:
Stop = Close – (Multiplier × ATR)
For a downtrend, the stop is:
Stop = Close + (Multiplier × ATR)
The indicator maintains a persistent trailing stop that dynamically adjusts:
In an uptrend, the trailing stop only moves upward (or remains flat) to secure gains.
In a downtrend, it only moves downward, thereby protecting the position from excessive losses.
A reversal in trend is identified when the price crosses the trailing stop level, at which point the indicator flips the trend and resets the stop level accordingly.
Rationale:
Utilizing the ATR for trailing stops ensures that the stop levels are directly influenced by market volatility. This dynamic adjustment helps accommodate the natural price fluctuations of the market, providing a more adaptive risk management tool compared to fixed stop-loss levels. The approach is particularly useful in volatile markets where traditional static stops might be triggered prematurely.
Customization:
Key parameters that can be adjusted include:
ATR Period: The number of bars used to calculate the ATR.
ATR Multiplier: The factor that determines how far the trailing stop is set from the current price.
Smoothing Method: Option to choose between SMA and EMA for ATR calculation, allowing traders to tailor the sensitivity of the indicator to their specific trading style.
3 EMA + RSI with Trail Stop [Free990] (LOW TF)This trading strategy combines three Exponential Moving Averages (EMAs) to identify trend direction, uses RSI to signal exit conditions, and applies both a fixed percentage stop-loss and a trailing stop for risk management. It aims to capture momentum when the faster EMAs cross the slower EMA, then uses RSI thresholds, time-based exits, and stops to close trades.
Short Explanation of the Logic
Trend Detection: When the 10 EMA crosses above the 20 EMA and both are above the 100 EMA (and the current price bar closes higher), it triggers a long entry signal. The reverse happens for a short (the 10 EMA crosses below the 20 EMA and both are below the 100 EMA).
RSI Exit: RSI crossing above a set threshold closes long trades; crossing below another threshold closes short trades.
Time-Based Exit: If a trade is in profit after a set number of bars, the strategy closes it.
Stop-Loss & Trailing Stop: A fixed stop-loss based on a percentage from the entry price guards against large drawdowns. A trailing stop dynamically tightens as the trade moves in favor, locking in potential gains.
Detailed Explanation of the Strategy Logic
Exponential Moving Average (EMA) Setup
Short EMA (out_a, length=10)
Medium EMA (out_b, length=20)
Long EMA (out_c, length=100)
The code calculates three separate EMAs to gauge short-term, medium-term, and longer-term trend behavior. By comparing their relative positions, the strategy infers whether the market is bullish (EMAs stacked positively) or bearish (EMAs stacked negatively).
Entry Conditions
Long Entry (entryLong): Occurs when:
The short EMA (10) crosses above the medium EMA (20).
Both EMAs (short and medium) are above the long EMA (100).
The current bar closes higher than it opened (close > open).
This suggests that momentum is shifting to the upside (short-term EMAs crossing up and price action turning bullish). If there’s an existing short position, it’s closed first before opening a new long.
Short Entry (entryShort): Occurs when:
The short EMA (10) crosses below the medium EMA (20).
Both EMAs (short and medium) are below the long EMA (100).
The current bar closes lower than it opened (close < open).
This indicates a potential shift to the downside. If there’s an existing long position, that gets closed first before opening a new short.
Exit Signals
RSI-Based Exits:
For long trades: When RSI exceeds a specified threshold (e.g., 70 by default), it triggers a long exit. RSI > short_rsi generally means overbought conditions, so the strategy exits to lock in profits or avoid a pullback.
For short trades: When RSI dips below a specified threshold (e.g., 30 by default), it triggers a short exit. RSI < long_rsi indicates oversold conditions, so the strategy closes the short to avoid a bounce.
Time-Based Exit:
If the trade has been open for xBars bars (configurable, e.g., 24 bars) and the trade is in profit (current price above entry for a long, or current price below entry for a short), the strategy closes the position. This helps lock in gains if the move takes too long or momentum stalls.
Stop-Loss Management
Fixed Stop-Loss (% Based): Each trade has a fixed stop-loss calculated as a percentage from the average entry price.
For long positions, the stop-loss is set below the entry price by a user-defined percentage (fixStopLossPerc).
For short positions, the stop-loss is set above the entry price by the same percentage.
This mechanism prevents catastrophic losses if the market moves strongly against the position.
Trailing Stop:
The strategy also sets a trail stop using trail_points (the distance in price points) and trail_offset (how quickly the stop “catches up” to price).
As the market moves in favor of the trade, the trailing stop gradually tightens, allowing profits to run while still capping potential drawdowns if the price reverses.
Order Execution Flow
When the conditions for a new position (long or short) are triggered, the strategy first checks if there’s an opposite position open. If there is, it closes that position before opening the new one (prevents going “both long and short” simultaneously).
RSI-based and time-based exits are checked on each bar. If triggered, the position is closed.
If the position remains open, the fixed stop-loss and trailing stop remain in effect until the position is exited.
Why This Combination Works
Multiple EMA Cross: Combining 10, 20, and 100 EMAs balances short-term momentum detection with a longer-term trend filter. This reduces false signals that can occur if you only look at a single crossover without considering the broader trend.
RSI Exits: RSI provides a momentum oscillator view—helpful for detecting overbought/oversold conditions, acting as an extra confirmation to exit.
Time-Based Exit: Prevents “lingering trades.” If the position is in profit but failing to advance further, it takes profit rather than risking a trend reversal.
Fixed & Trailing Stop-Loss: The fixed stop-loss is your safety net to cap worst-case losses. The trailing stop allows the strategy to lock in gains by following the trade as it moves favorably, thus maximizing profit potential while keeping risk in check.
Overall, this approach tries to capture momentum from EMA crossovers, protect profits with trailing stops, and limit risk through both a fixed percentage stop-loss and exit signals from RSI/time-based logic.
Adaptive ATR Trailing Stops█ Introduction
This script is based on the average true range (ATR) and has been improved with the HHV or LLV. The script supports the trader to have his stoploss trailed. In this case, the stoploss is dynamic and can be adjusted with each candleclose.
█ What Does This Indicator Do?
The ATR SL Trailing Indicator helps you dynamically adjust your stop-loss levels based on market movements. It uses market volatility to calculate trailing stop-loss levels, ensuring you can secure profits or minimize losses. The indicator creates two lines:
A green/red line for long positions (when you’re betting on prices going up).
A green/red line for short positions (when you’re betting on prices going down).
█ Key Concepts: How Does the Indicator Work?
The Average True Range (ATR) measures market volatility, showing how much the price moves over a specific period.
A high ATR indicates a volatile market (large price swings), while a low ATR indicates a quiet market (smaller price changes).
Why is ATR important? ATR helps dynamically adjust the distance between your stop-loss and the current price. In volatile markets, the stop-loss is placed further away to avoid being triggered by short-term fluctuations. In quieter markets, the stop-loss is set closer to the price.
The HHV is the highest price over a specific period. For long positions, the indicator uses the highest price minus an ATR-based value to determine the stop-loss level.
Why is HHV important? HHV ensures the stop-loss for long positions only moves up when the price reaches new highs. Once the price starts falling, the stop-loss remains unchanged to lock in profits or minimize losses.
The LLV is the lowest price over a specific period. For short positions, the indicator uses the lowest price plus an ATR-based value to determine the stop-loss level.
Why is LLV important? LLV ensures the stop-loss for short positions only moves down when the price reaches new lows. Once the price starts rising, the stop-loss remains unchanged to lock in profits or minimize losses.
█ How Does the Indicator Work?
For Long Positions:
The indicator sets the stop-loss below the current price, based on:
Market volatility (ATR).
The highest price over a specific period (HHV).
The line turns green when the current price is above the stop-loss.
The line turns red when the price drops below the stop-loss, signaling you may need to exit the trade.
For Short Positions:
The indicator sets the stop-loss above the current price, based on:
*Market volatility (ATR).
*The lowest price over a specific period (LLV).
*The line turns green when the current price is below the stop-loss.
*The line turns red when the price moves above the stop-loss, signaling you may need to exit the trade.
█ Advantages of the ATR SL Trailing Indicator
*Dynamic and adaptive: Automatically adjusts stop-loss levels based on market volatility.
*Visual clarity: Green and red lines clearly indicate whether your position is safe or at risk.
*Effective risk management: Helps you lock in profits and minimize losses without the need for constant manual adjustments.
█ When Should You Use This Indicator?
*If you practice trend-based trading and want your stop-losses to automatically adapt to market movements.
*In volatile markets, to avoid being stopped out by short-term fluctuations.
*When you want to implement efficient risk management without manually adjusting your positions.
█ Inputs
The user can set the indicator for both longs and shorts. This is particularly important because the calculation is different. The HHV is used for longs and the LLV for shorts. The user can therefore set the period/length for the ATR on the one hand and the HHV/LLV on the other. He also has a multiplier, which can also be customized. The multiplier multiplies the price change of each individual candle.
█ Color Change
If the SL is trailed and the price breaks a line, the color changes. In this case, it would have executed the SL on an open trade.
ATR Trailing Stop Bands [R] This is based on the Average True Range Trailing Stops Strategy by Sylvain Vervoort, coded on TV HPotter. I have added Bands to see potential short and long stop loss zones before the indicator signals to switch itself, also changed color on the main Trailing Stop based on whether it is short or long, added increased stop loss hunt protection by combining with my Wickiness indicator to add Wick Protection, based on either Average or Maximum Wicks, to prevent your stop getting wicked out. Experiment with different timeframes according to your trading style and how long you like to hold a trade. This indicator does not intend to tell you when to take profit, just how to place your stop to give you the best chance of not getting stopped out too early and to minimise risk by trailing it safely.
May you all never be stop hunted again.
Heatmap Trailing Stop with Breakouts (Zeiierman)█ Overview
Heatmap Trailing Stop with Breakouts (Zeiierman) is a trend and breakout detection tool that combines dynamic trailing stop logic, Fibonacci-based levels, and a real-time market heatmap into a single, intuitive system.
This indicator is designed to help traders visualize pressure zones, manage stop placement, and identify breakout opportunities supported by contextual price–derived heat. Whether you're trailing trends, detecting reversals, or entering on explosive breakouts — this tool keeps you anchored in structure and sentiment.
It projects adaptive trailing stop levels and calculates Fibonacci extensions from swing-based extremes. These levels are then colored by a market heatmap engine that tracks price interaction intensity — showing where the market is "hot" and likely to respond.
On top of that, it includes breakout signals powered by HTF momentum conditions, trend direction, and heatmap validation — giving you signals only when the context is strong.
█ How It Works
⚪ Trailing Stop Engine
At its core, the script uses an ATR-based trailing stop with trend detection:
ATR Length – Defines volatility smoothing using EMA MA of true range.
Multiplier – Expands/retracts the trailing offset depending on market aggression.
Real-Time Extremum Tracking – Uses local highs/lows to define Fibonacci anchors.
⚪ Fibonacci Projection + Heatmap
With each trend shift, Fibonacci levels are projected from the new swing to the current trailing stop. These include:
Fib 61.8, 78.6, 88.6, and 100% (trailing stop) lines
Heatmap Coloring – Each level'slevel's color is determined by how frequently price has interacted with that level in the recent range (defined by ATR).
Strength Score (1–10) – The number of touches per level is normalized and averaged to create a heatmap ""score"" displayed as a colored bar on the chart.
⚪ Breakout Signal System
This engine detects high-confidence breakout signals using a higher timeframe candle structure:
Bullish Breakout – Strong bullish candle + momentum + trend confirmation + heatmap score threshold.
Bearish Breakout – Strong bearish candle + momentum + trend confirmation + heatmap score threshold.
Cooldown Logic – Prevents signals from clustering too frequently during volatile periods.
█ How to Use
⚪ Trend Following & Trail Stops
Use the Trailing Stop line to manage positions or time entries in line with trend direction. Trailing stop flips are highlighted with dot markers.
⚪ Fibonacci Heat Zones
The projected Fibonacci levels serve as price magnets or support/resistance zones. Watch how price reacts at Fib 61.8/78.6/88.6 levels — especially when they're glowing with high heatmap scores (more glow = more historical touches = stronger significance).
⚪ Breakout Signals
Enable breakout signals when you want to trade breakouts only under strong context. Use the "Heatmap Strength Threshold" to require a minimum score (1–10).
█ Settings
Stop Distance ATR Length – ATR period for volatility smoothing
Stop Distance Multiplier – Adjusts the trailing stop'sstop's distance from price
Heatmap Range ATR Length – Defines how far back the heatmap scans for touches
Number of Heat Levels – Total levels used in the heatmap (more = finer resolution)
Minimum Touches per Level – Defines what counts as a ""hot"" level
Heatmap Strength Threshold – Minimum average heat score (1–10) required for breakouts
Timeframe – HTF source used to evaluate breakout momentum structure
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Disclaimer
The content provided in my scripts, indicators, ideas, algorithms, and systems is for educational and informational purposes only. It does not constitute financial advice, investment recommendations, or a solicitation to buy or sell any financial instruments. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.
All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, backtest, or individual's trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.
Dynamic Trailing Stop with Trend ChangeKey features of this script:
Trend Identification: Uses previous day's high/low breaks to identify trend changes.
Uptrend starts when price closes above the previous day's high.
Downtrend starts when price closes below the previous day's low.
Dynamic Trailing Stop:
In an uptrend, the stop is set to the previous day's low and trails higher.
In a downtrend, the stop is set to the previous day's high and trails lower.
Visual Indicators:
Green triangle for uptrend start, red triangle for downtrend start.
Green/red line for the trailing stop.
Background color changes to light green in uptrends, light red in downtrends.
Alerts:
Trend change alerts when a new trend is identified.
Stop hit alerts when price crosses the trailing stop, suggesting a potential exit.
This implementation allows you to:
Identify trend changes based on previous day's high/low breaks.
Trail your stop loss dynamically as the trend progresses.
Get visual and alert-based signals for trend changes and potential exit points.
For swing trading, you could:
Enter long when an uptrend starts (green triangle).
Set your initial stop loss to the trailing stop (green line).
Exit if the price closes below the trailing stop or a downtrend starts (red triangle).
(Reverse for short trades)
Remember, while this strategy can be effective, it's important to combine it with other forms of analysis and proper risk management. The effectiveness can vary depending on the volatility of the asset and overall market conditions. Always test thoroughly before using in live trading.
Market Structure Trailing Stop [BigBeluga]The Market Structure Trailing Stop indicator is an advanced tool for identifying market structure shifts, liquidity sweeps, and potential trend reversals using comprehensive volume analysis. This indicator combines the analysis of market structure pivots (CHoCH - Change of Character) with a sophisticated volume-based trailing stop logic. By evaluating delta volume at key structural points, it allows traders to identify high-probability trend continuations or reversals and manage their trades more effectively.
🔵 KEY FEATURES
● Market Structure Analysis
Pivot-Based Market Structure : The indicator identifies high and lows using user-defined periods, allowing traders to spot key market structure shifts.
Change of Character (CHoCH) : The first significant break of a market structure is marked as a CHoCH, indicating a potential trend reversal.
Break of Structure (BoS) : The indicator highlights subsequent breaks of structure after CHoCH, providing traders with crucial insights into trend strength.
● Advanced Volume Analysis
Delta Volume Evaluation : The indicator calculates delta volume (difference between up and down volume) at each ChoCh or BoS market structure point to assess the strength of the move. Identify Delta Volume from break point back to Pivot
● Trailing Stop Logic
Volume-Validated Trailing Stop : The indicator automatically plots a trailing stop if the delta volume at the UP CHoCH is positive and above the defined threshold and vice versa for Down CHoCH , allowing traders to protect their profits while riding the trend.
Trend Weakness Detection : If a subsequent BoS occurs with negative delta volume or lower volume than the input threshold, the trailing stop disappears, indicating potential trend exhaustion or reversal.
Dynamic Stop Placement : The trailing stop is dynamically adjusted based on market structure and volume, providing traders with a more adaptive stop-loss strategy.
Up Trend Trailing Stop:
Down Trend Trailing Stop:
● Liquidity Sweep Detection
Liquidity Sweep (X) Labels : The indicator identifies liquidity sweeps—points where the price temporarily reverses to sweep liquidity above or below a key level—marked with an “X” label.
Potential Reversal Zones : These liquidity sweeps are potential reversal zones, especially when accompanied by significant delta volume changes, providing traders with early warnings of potential trend reversals.
🔵 HOW TO USE
● Identifying Market Structure Shifts
Change of Character (CHoCH) : When a CHoCH occurs, the indicator calculates the total volume from the high point to the break point. If the delta volume is positive and exceeds the input threshold, a trailing stop is plotted, signaling potential trend continuation.
Break of Structure (BoS) : If BoS is enabled, subsequent breaks of structure are highlighted. If these BoS points show weaker volume or negative delta volume, the trailing stop will disappear, indicating that the trend may be losing strength.
● Using the Trailing Stop Feature
Protecting Profits : Once a CHoCH occurs and the delta volume validates the trend, the trailing stop will be plotted below (or above) the price to protect profits while allowing the trend to run.
Trend Reversal Signals : If the trailing stop disappears due to weak volume at subsequent BoS points, it may signal that the trend is losing momentum, and traders may consider closing their positions or tightening their stops manually.
● Liquidity Sweep Interpretation
Spotting Reversal Zones : Liquidity sweeps, marked with an “X” label, indicate zones where the price has swept liquidity. These areas can serve as potential reversal zones, especially when significant delta volume is observed at these points.
Early Reversal Warnings : Traders can use these liquidity sweep labels as early warnings for potential trend reversals, particularly in conjunction with other technical analysis methods.
🔵 CUSTOMIZATION
Highs and Lows Calculation : Customize the number of bars to the left and right for identifying pivots and market structure shifts.
Volume Threshold : Define the volume threshold to filter out weaker moves and focus on significant market structure shifts.
BoS and Liquidity Sweep Labels : Toggle on or off the BoS and Liquidity Sweep labels to tailor the indicator to your trading style.
Trend Color : Enable or disable trend coloring for candles to visually highlight uptrends and downtrends on the chart.
🔵 CONCLUSION
The Market Structure Trailing Stop indicator combines advanced volume analysis with market structure detection to provide traders with a powerful tool for identifying and managing trends. By leveraging delta volume at key structure points, it helps traders validate trend strength and manage their positions with a dynamic trailing stop strategy. The addition of liquidity sweep detection further enhances its utility, offering early warnings of potential trend reversals. This indicator is ideal for traders who want to gain a deeper understanding of market structure while incorporating volume-based insights into their trading strategies.
