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Dynamic Candle Trailing Stop
Dynamic Candle Trailing Stop (v1)
The Dynamic Candle Trailing Stop is a clean, multi-directional trailing stop tool designed to help traders automate exit management, protect profits, and reduce emotional decision-making.
Instead of relying on volatility indicators like ATR or static percentages, this indicator anchors its trailing stop directly to recent price structure (highs and lows over a customizable candle period, default is 6 candles).
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🔹 How It Works
1. Structural Anchoring: It continuously calculates the highest high and lowest low over a user-defined lookback window (`# of Candles to Look Back`).
2. One-Way Ratcheting Mechanism:
- In a Long Trend: The trailing stop only moves UP (ratchets upward as new local lows form) and will never step down.
- In a Short Trend: The trailing stop only moves DOWN (ratchets downward as new local highs form) and will never step up.
3. Automated Trend Reset: When price closes beyond the trailing stop, the trend state automatically flips, and the stop resets to the opposite structural boundary.
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🟢 How to Use It
* Color Coding:
* Green Stepline: Active Long Trailing Stop.
* Red Stepline: Active Short Trailing Stop.
* Exit Signal: Close a position when the candle closes beyond the stepline.
* Trend Filtering: Use the line color as an extra confirmation filter for current short-term directional bias.
* Ranges: Don't ratchet your stop if the current candles closes opposite direction. Leave space for a range to breath. If you move the stop too aggressively you won't be able to capture the bigger move.
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⚙️ Settings
* # of Candles to Look Back:
* Default: `6`
* Lower values (e.g., 2–3) provide a tight, fast-reacting trail for scalping.
* Higher values (e.g., 5–10) give the asset more breathing room, suited for longer intraday trading.
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Open source under Mozilla Public License 2.0. Enjoy, and safe trading!
The Dynamic Candle Trailing Stop is a clean, multi-directional trailing stop tool designed to help traders automate exit management, protect profits, and reduce emotional decision-making.
Instead of relying on volatility indicators like ATR or static percentages, this indicator anchors its trailing stop directly to recent price structure (highs and lows over a customizable candle period, default is 6 candles).
-----
🔹 How It Works
1. Structural Anchoring: It continuously calculates the highest high and lowest low over a user-defined lookback window (`# of Candles to Look Back`).
2. One-Way Ratcheting Mechanism:
- In a Long Trend: The trailing stop only moves UP (ratchets upward as new local lows form) and will never step down.
- In a Short Trend: The trailing stop only moves DOWN (ratchets downward as new local highs form) and will never step up.
3. Automated Trend Reset: When price closes beyond the trailing stop, the trend state automatically flips, and the stop resets to the opposite structural boundary.
-----
🟢 How to Use It
* Color Coding:
* Green Stepline: Active Long Trailing Stop.
* Red Stepline: Active Short Trailing Stop.
* Exit Signal: Close a position when the candle closes beyond the stepline.
* Trend Filtering: Use the line color as an extra confirmation filter for current short-term directional bias.
* Ranges: Don't ratchet your stop if the current candles closes opposite direction. Leave space for a range to breath. If you move the stop too aggressively you won't be able to capture the bigger move.
-----
⚙️ Settings
* # of Candles to Look Back:
* Default: `6`
* Lower values (e.g., 2–3) provide a tight, fast-reacting trail for scalping.
* Higher values (e.g., 5–10) give the asset more breathing room, suited for longer intraday trading.
-----
Open source under Mozilla Public License 2.0. Enjoy, and safe trading!
Notas de prensa
Changed default # of candles to 6 as I've found that to be a better starting point.
If you know yourself and know your enemy(ticker) you will always win
Exención de responsabilidad
La información y las publicaciones no constituyen, ni deben considerarse como, asesoramiento o recomendaciones financieras, de inversión, de trading u otro tipo, proporcionadas o respaldadas por TradingView. Obtenga más información en Condiciones de uso.
If you know yourself and know your enemy(ticker) you will always win
Exención de responsabilidad
La información y las publicaciones no constituyen, ni deben considerarse como, asesoramiento o recomendaciones financieras, de inversión, de trading u otro tipo, proporcionadas o respaldadas por TradingView. Obtenga más información en Condiciones de uso.