Dual ATR Trailing Stops for Trend Signals

Summary

This indicator combines fast and slow ATR-based trailing stop lines. Each line follows price using an ATR distance and adjusts according to whether the close remains above or below its prior stop level. The slow line acts as a conventional trailing stop reference; the faster line is intended to help generate directional signals.

Signals are derived from the spread between the two stops. The indicator compares that spread with a moving average and marks transitions into positive or negative conditions with chart arrows. Its description says it is intended for highly volatile markets, but supplies no backtest, trade rules, asset specification, or performance evidence. The example settings use different ATR periods and multipliers for the fast and slow lines, so outcomes will depend on chosen inputs and market data. It is an indicator description, not a complete tested trading system or evidence that the signals are profitable.

Key ideas

• The indicator plots fast and slow trailing stops based on average true range.
• The slow stop provides a conventional trailing reference, while the fast stop is used in signal generation.
• Signals come from the difference between the stop lines and a smoothed version of that difference.
• The document claims suitability for volatile markets but provides no empirical validation.

Tags

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