See images below for more explanation. Why use a trailing stop-loss? A trailing stop-loss provides an exit when price moves against intelligent investor share advisor review you but also enables you to move the exit point further into profit when price is moving in the desired direction of a trade.

The ATR Stop Loss plotted. Note that the trailing value that is considered as the stop loss value is the value of the ATR from the prior candle. The settings for the ATR calculation can be modified within the settings. An optional fixed profit target can be added forex vocabulary within the settings. This profit target will only actively be plotted when the ATR Trailing Stop-loss has not be hit hit yet or until the profit target has been hit. Here shows that the profit target was hit, then later on the ATR Trailing Stop-loss was hit.

Visual Chart

The ATR which is used to measure volatility, is very effective at functioning as a trailing stop loss. Indicator Explanation Initially when this indicator is added to the chart, you will be prompted to select where to begin the ATR Trailing Stop-loss. For a long axi review stop-loss, select below price. For a short stop-loss, select above price. After this indicator is placed, it can be modified via dragging or from within the settings by modifying the time and the price input. Or simply re-add the indicator to the chart.

• An optional fixed profit target can be added within the settings.
• Indicator Explanation Initially when this indicator is added to the chart, you will be prompted to select where to begin the ATR Trailing Stop-loss.
• After this indicator is placed, it can be modified via dragging or from within the settings by modifying the time and the price input.
• The ATR Stop Loss plotted.

Note, trailing stop-loss will continue to be plotted until it has been hit regardless of the profit target being hit or not. ‘Check’ alerts to use within indicator settings (trailing stop hit and/or profit target hit). Select ‘Create Alert’ 3. Set the condition to ‘Interactive ATR” 4.