UT Bot ATR Trailing Stop for Trend Signals

Summary

The UT Bot indicator uses an ATR-scaled trailing stop to classify price as being in an uptrend or downtrend. Its stop distance is the average true range multiplied by a sensitivity factor, so the distance changes with recent volatility. Price above the stop indicates an uptrend; price below it indicates a downtrend. The indicator can color candles and mark signals with arrows.

Users can choose closing prices or a Heikin Ashi-style average as the input, adjust the ATR period and multiplier, and turn visual signals on or off. The described entry conditions also require a one-period average of the input to cross the trailing stop while price is on the corresponding side. The document explains the indicator’s mechanics and provides implementation code, but gives no performance tests or evidence that its signals are profitable. It does not specify position sizing, exit rules beyond the stop, transaction costs, or how results vary across markets and settings.

Key ideas

• The trailing stop is set using an ATR distance scaled by a user-selected multiplier.
• Price above or below the stop determines the displayed trend direction.
• Signal arrows require both price positioning and an average crossing the stop.
• The input can use closing prices or a Heikin Ashi-style price average.
• The document describes indicator mechanics but provides no evidence of trading performance.

Tags

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