NRTR Percentage Trailing Stops and Trend-Reversal Signals

Summary

The Nick Rypock Trailing Reverse indicator tracks the active trend with a stop set a fixed percentage away from the current trend’s price extreme. In an uptrend, it records the highest close and places the stop below that high; in a downtrend, it records the lowest close and places the stop above that low. A close crossing the stop reverses the state and starts tracking the opposite extreme.

The document explains that this resembles a Chandelier Exit but uses a percentage offset instead of an ATR component. The script plots separate long and short stop segments, marks direction changes as buy or sell signals, and can issue alerts. It gives the calculation logic, but no backtest or evidence of returns. The percentage setting controls sensitivity: tighter offsets can produce more reversals, while wider offsets allow more price movement before a flip. The indicator alone does not specify position sizing or a complete trading system.

Key ideas

• The NRTR stop stays a fixed percentage away from the current trend’s highest or lowest close.
• A close crossing the stop changes the trend state and resets the tracked extreme.
• The indicator uses a percentage offset rather than the ATR component used by Chandelier Exit.
• Buy and sell markers represent direction flips, but the document reports no performance testing.

Tags

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