OPEN-SOURCE SCRIPT
ka66: Percent Stop Channel
Often used as a dynamic stop loss management tool, this indicator:
Since long vs. short trade profiles can be different, differing percentage inputs are allowed for the bands.
While in forex or futures we tend to use ATRs (see my other script: ATR Stop Channels), in stocks, a percentage is more the norm, it's still as dynamic as the source series, being a function of it, and may at times be simpler to reason about in terms of money.
An idea might be to set your stop loss at the point of entry where the band currently is (assuming you have observed and set a reasonable percentage).
- Takes a source series as input, e.g. a moving average, or close prices.
- Draws configurable channels, some percentage above and below the source series (e.g. for long vs. short stop losses)
Since long vs. short trade profiles can be different, differing percentage inputs are allowed for the bands.
While in forex or futures we tend to use ATRs (see my other script: ATR Stop Channels), in stocks, a percentage is more the norm, it's still as dynamic as the source series, being a function of it, and may at times be simpler to reason about in terms of money.
An idea might be to set your stop loss at the point of entry where the band currently is (assuming you have observed and set a reasonable percentage).
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.
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