OPEN-SOURCE SCRIPT
AWC-ATR-AYNET
Summary of the Script
The script calculates and plots a dynamic stop-loss level based on a modified ATR (Average True Range). This stop level adapts to market volatility and price action, providing traders with potential trailing stop levels or trend-following guidance.
Key Features
Dynamic Stop Calculation:
The stop level (c1) is determined based on the ATR and user-defined parameters for period, multiplier, and adjustment (p, m, and a).
The stop switches dynamically between a support (below the price) and resistance (above the price) level.
Color-Coded Visualization:
The stop line is color-coded:
Green: When the stop is below the price (bullish trend).
Red: When the stop is above the price (bearish trend).
Inputs:
p: ATR period for volatility measurement.
m: Multiplier to adjust the stop distance.
a: Fine-tuning factor for the stop calculation.
Plotting:
The calculated stop level is plotted on the chart with dynamic colors and adjustable thickness.
Alerts:
Alerts are triggered when the price crosses the stop level:
Uptrend Alert: When the stop moves below the price.
Downtrend Alert: When the stop moves above the price.
Use Case
Trailing Stop:
Traders can use the stop level as a trailing stop-loss for long or short trades.
Trend Confirmation:
The color-coded stop level helps visually confirm whether the market is in an uptrend or downtrend.
This script provides an adaptive stop-loss strategy that dynamically adjusts to price movement and volatility, making it useful for traders looking to minimize risk or follow trends.
The script calculates and plots a dynamic stop-loss level based on a modified ATR (Average True Range). This stop level adapts to market volatility and price action, providing traders with potential trailing stop levels or trend-following guidance.
Key Features
Dynamic Stop Calculation:
The stop level (c1) is determined based on the ATR and user-defined parameters for period, multiplier, and adjustment (p, m, and a).
The stop switches dynamically between a support (below the price) and resistance (above the price) level.
Color-Coded Visualization:
The stop line is color-coded:
Green: When the stop is below the price (bullish trend).
Red: When the stop is above the price (bearish trend).
Inputs:
p: ATR period for volatility measurement.
m: Multiplier to adjust the stop distance.
a: Fine-tuning factor for the stop calculation.
Plotting:
The calculated stop level is plotted on the chart with dynamic colors and adjustable thickness.
Alerts:
Alerts are triggered when the price crosses the stop level:
Uptrend Alert: When the stop moves below the price.
Downtrend Alert: When the stop moves above the price.
Use Case
Trailing Stop:
Traders can use the stop level as a trailing stop-loss for long or short trades.
Trend Confirmation:
The color-coded stop level helps visually confirm whether the market is in an uptrend or downtrend.
This script provides an adaptive stop-loss strategy that dynamically adjusts to price movement and volatility, making it useful for traders looking to minimize risk or follow trends.
Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.