SwingArm ATR Trailing Stop with Fibonacci Retracement Levels

Summary

The SwingArm combines an ATR-based trailing stop with Fibonacci retracement levels drawn between the active stop and the trend’s running price extreme. Its trend state changes when the close crosses the trailing line; while a trend persists, the stop ratchets using an ATR multiple. The retracement levels are presented as possible pullback entry references within an established trend, while the stop line can guide trailing exits.

The included indicator code exposes choices for modified or conventional true range, ATR averaging method, initial direction, and optional arrows. The author suggests different chart intervals for day and swing trading, but provides no performance tests or comparative evidence. The description is a technical indicator explanation, not a complete trading system: it does not specify position sizing, entry confirmation beyond the proposed retracements, or validation across markets and regimes.

Key ideas

• The indicator uses an ATR multiple to set a trailing stop and determine trend state.
• A close crossing the active stop switches the state between long and short regimes.
• Fibonacci levels are placed between the stop and the running trend extreme as potential pullback references.
• Settings allow variations in true range calculation, ATR smoothing, initial direction, and arrow display.
• The suggested chart intervals are author preferences and are not supported by performance evidence.

Tags

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