OPEN-SOURCE SCRIPT
'last red low / last green high' exit
Updated
This is a good alternative to pivot points and ma lines to find long and short exit points (stop loss prices) for a trade.
When you hear traders say "set the stop loss to the recent swing", this indicator seems to do a reasonable job of finding those.
This script marks
in order to help identify a reasonable stop loss exit point for long and short trades.
You can also specify a distance threshold to the stop loss point.
How to use it.
Note: A good rule is that if this indicator does not show a valid exit line, do not enter the trade.
Note: If the change of a new "last Green High" or the "last Red Low" is below 0.5%, the indicator will keep the previous values
When you hear traders say "set the stop loss to the recent swing", this indicator seems to do a reasonable job of finding those.
This script marks
- the low of the most recent red candle
- the high of the most recent green candle
in order to help identify a reasonable stop loss exit point for long and short trades.
You can also specify a distance threshold to the stop loss point.
How to use it.
- Decide how far from the current price the exit should be (default 1.5%)
- Use your chosen trading strategy to identify a long or short entry position
- Add a long/short drawing to the close of the trade candle
- Set the stop loos of your drawing to the exit line of this indicator
- Set the take profit of your drawing using the desired risk to reward ratio
Note: A good rule is that if this indicator does not show a valid exit line, do not enter the trade.
Note: If the change of a new "last Green High" or the "last Red Low" is below 0.5%, the indicator will keep the previous values
Release Notes
Fixed an issue where the distance to exit % was not using the input.Changed the default to 0.5
Release Notes
Changed line typeremoved stuff from the cart.
Release Notes
Fix error converting the change required to switch to a new recent low/highAlso added input for that threshold
Release Notes
Removed a debug plot because I'm an idiotRelease Notes
Added the ability to show or hide long or short lines.Release Notes
Removed an unreasonable offsetRelease Notes
added a change filter for the plot to make the chart clearerOpen-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
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