Parabolic Stop
Parbolic Stop is a mix between the indicator Parabolic SAR, Volatility Stop and an SMA.
The goal of this indicator is to place your stop loss in an optimized spot. You can also combine the indicator switch from different timeframes to get buy or sell signal.
The goal of this indicator is to place your stop loss in an optimized spot. You can also combine the indicator switch from different timeframes to get buy or sell signal.
study(title="Parabolic Stop", shorttitle="StopAR", overlay=true) start = input(0.02) increment = input(0.05) maximum = input(0.2) sar = sar(start, increment, maximum) length = input(20) smaclose= sma(close, 3*length) smahigh = sma(high, 3*length) smalow = sma(low, 3*length) mult = input(4) atr_ = atr(length) max1 = max(nz(max_[1]), close) min1 = min(nz(min_[1]), close) is_uptrend_prev = nz(is_uptrend[1], true) stop = is_uptrend_prev ? max1 - mult * atr_ : min1 + mult * atr_ vstop_prev = nz(vstop[1]) vstop_prev2 = nz(vstop[2]) vstop1 = is_uptrend_prev ? min(max(vstop_prev, stop), sar): max(min(vstop_prev, stop), sar) is_uptrend = close - vstop1 >= 0 is_trend_changed = is_uptrend != is_uptrend_prev max_ = is_trend_changed ? close : max1 min_ = is_trend_changed ? close : min1 vstop = is_trend_changed ? is_uptrend ? max(max_ - mult * atr_, sar) : min(min_ + mult * atr_, sar) : vstop1 p1 = plot(vstop, color = is_uptrend ? aqua : fuchsia, style = line, linewidth=2) sma = is_uptrend?smaclose : smaclose p2 = plot(sma, color = white, linewidth=2)