ATR Stop-Loss by Marius A

Visual and Logical Behavior of the Code

1️⃣ ATR is calculated based on the chosen period (default 14) to determine volatility.
2️⃣ When the price crosses above the SMA(14), a Long stop-loss is set.
The stop-loss is placed below the current price at a distance of 1.5 × ATR (default).
The green line appears below the candle.
3️⃣ When the price crosses below the SMA(14), a Short stop-loss is set.
The stop-loss is placed above the current price at a distance of 1.5 × ATR.
The red line appears above the candle.

🔹 Examples of Manifestation on the Chart
📌 Scenario 1: Bullish Trend → Long Stop-Loss is Activated
✅ If the price rises above the SMA(14), a green stop-loss is set below the price.
✅ The stop-loss remains fixed until the price makes a new crossover.

🔴 If the price drops and hits the green line, the Long position is closed.

📌 Scenario 2: Bearish Trend → Short Stop-Loss is Activated
✅ If the price falls below the SMA(14), a red stop-loss is set above the price.
✅ The stop-loss remains in place until a new cross below the SMA(14).

🟢 If the price rises and hits the red line, the Short position is closed.

🔹 Strengths and Limitations of the Code
✅ Advantages:

Automatically adapts to market volatility.
Works on any timeframe and instrument.
Provides a dynamic stop-loss based on real conditions.
❌ Limitations:

Does not adjust the stop-loss after each candle (it is not a trailing stop).
The stop-loss remains fixed until a new crossover/crossunder of the price over the SMA(14).
Does not provide entry signals, only position protection.