ATR Swing Arm Trend Stops with Fibonacci Pullback Signals

Summary

This indicator uses an ATR-scaled trailing stop to classify price as bullish or bearish. It offers modified and unmodified true-range calculations, then multiplies a smoothed range by a configurable factor to set the stop distance. The stop ratchets as the trend continues, and a change in price relative to the prior stop flips the trend state. A running extreme tracks the high in bullish phases or the low in bearish phases.

The indicator plots the trend stop and extreme, then derives three Fibonacci levels between them. In a bullish state, crosses below those levels mark potential pullback entries; in a bearish state, crosses above them mark corresponding signals. Alerts are available for these crosses and for stop-line changes. The author presents green and red as visual trend cues, but supplies no entry or exit validation, backtest evidence, or guidance for choosing settings across markets. Signals are indicator events rather than proof of a profitable trading rule.

Key ideas

• An ATR-scaled stop defines the bullish or bearish trend state and trails as price advances.
• The indicator tracks the phase extreme alongside the trailing stop.
• Three Fibonacci levels between the extreme and stop generate potential pullback signals.
• Alerts identify level crosses and changes to the stop line.
• The document provides no backtest results or evidence that the signals are profitable.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.