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Stop Loss with ATR Buffer

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1. Core Logic
Long Positions: Places a stop-loss below the previous bar's low by a buffer of ATR * bufferMultiplier.
Short Positions: Places a stop-loss above the previous bar's high by the same ATR-based buffer.
2. Key Features
ATR Volatility Adjustment:
Uses the Average True Range (ta.atr()) to adapt stop distances to market volatility. Larger ATR values widen the stop buffer during volatile markets.

User-Defined Buffer:
The bufferMultiplier lets you fine-tune how tightly/loosely stops follow price (e.g., 0.5 uses half the ATR value).

3. Visualization
Dynamic Lines:
Plots two lines on the chart:

Green for long stop levels.
Red for short stop levels.
Lines update on every bar to reflect new price action.
Historical Levels:
Optional trailing lines show only the most recent stop levels (avoysluttering the chart).

4. Use Cases
Trailing Stop-Loss: Track price momentum while maintaining a volatility-based safety margin.
Entry Confirmation: Identify potential reversal zones where price breaks through the ATR-buffered stops.
Risk Management: Size stops proportionally to market volatility, avoiding fixed-price thresholds.
Example Scenario:
If the previous candle’s low is $100, ATR is $2, and bufferMultiplier = 0.5:
Long Stop = 100 - (2 * 0.5) = $99.
Price must drop below $99 to trigger the stop, giving trades breathing room.

Feragatname

Bilgiler ve yayınlar, TradingView tarafından sağlanan veya onaylanan finansal, yatırım, işlem veya diğer türden tavsiye veya tavsiyeler anlamına gelmez ve teşkil etmez. Kullanım Şartları'nda daha fazlasını okuyun.