Volty Channel Stops: ATR-Based Stops with Monetary Risk

Summary

The Volty Channel Stops indicator, originally attributed to Igor Durkin, combines average true range (ATR) with monetary risk to derive a price level whose breach signals a possible trend change. The document presents a modified version that lets users select among several smoothing methods and displays the level that must be crossed for the trend signal to change. This makes the indicator a way to view volatility-based stop thresholds alongside a money-risk concept.

The description gives no formula, parameter guidance, performance results, or worked examples, so it does not establish how the indicator should be calibrated or whether its signals are profitable. It also notes that the implementation is native to MetaTrader 5, but provides no code or further operational detail. Traders would need to assess how its ATR and monetary-risk inputs behave for their instrument, timeframe, and position size before relying on the displayed threshold.

Key ideas

• The indicator uses ATR and monetary risk to define a channel stop level.
• A breach of the displayed threshold represents a potential trend change.
• The modified version offers SMA, EMA, SMMA, and LWMA smoothing choices.
• The description provides no calibration method or 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.