ATR Trailing Stops is a principle that uses the Average True
Range, a measure of price volatility, and uses it to set a trailing stop
loss.
The idea is that ATR gives a guide to the average volatility of price movements over a given period, making it easier to be more accurate about where to set the stop-loss.
True Range is calculated by looking at the price change and using the greater of three calculations: (high – previous close), (previous close – low) or (high – low).
The ATR Trailing Stop is plotted above the
price when the symbol is in a downtrend or below the price when the
symbol is in a uptrend.
Please note that this is only an indicator, it will not take any trade or exit any of your existing order.
Inputs:
You can change the plot style from here:
