Chart Lines for Visualizing Assumed Stop Distance

Summary

The document describes a simple chart aid that draws two lines at a preset distance from the current price to show the distance to an assumed stop. The lines provide a visual scale reference, helping traders judge price movement against a chosen stop distance. A setting can be disabled by entering zero for its parameter.

The note offers no rules for choosing a stop distance, trade entry or exit criteria, or evidence from testing. It explains only the display’s purpose and basic configuration, so it should be understood as a visualization aid rather than a complete risk management method. Its usefulness depends on the trader selecting a meaningful distance and interpreting it in the context of the instrument and chart.

Key ideas

• The indicator draws two lines at a preset distance from the current price.
• The lines help traders visually assess an assumed stop distance on the chart.
• A parameter can be disabled by setting it to zero.
• The document does not explain how to select or validate a stop distance.

Tags

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