Registered User Joined: 2/16/2012 Posts: 4
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Hi Bruce,
Could you please provide formula for ATR trailing stop (14days/2ATR) which shows as a line on the graph.
Thanks
N
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Worden Trainer
Joined: 10/7/2004 Posts: 65,138
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I can provide an Indicator Formula for two times the fourteen period average true range:
Please provide a description and PCF for calculating an ATR value to be used as a stop loss value
2 * ((AVGH14 - AVGL14) / 2 + (ABS(H - C1) + ABS(C1 - L) + ABS(H1 - C2) + ABS(C2 - L1) + ABS(H2 - C3) + ABS(C3 - L2) + ABS(H3 - C4) + ABS(C4 - L3) + ABS(H4 - C5) + ABS(C5 - L4) + ABS(H5 - C6) + ABS(C6 - L5) + ABS(H6 - C7) + ABS(C7 - L6) + ABS(H7 - C8) + ABS(C8 - L7) + ABS(H8 - C9) + ABS(C9 - L8) + ABS(H9 - C10) + ABS(C10 - L9) + ABS(H10 - C11) + ABS(C11 - L10) + ABS(H11 - C12) + ABS(C12 - L11) + ABS(H12 - C13) + ABS(C13 - L12) + ABS(H13 - C14) + ABS(C14 - L13)) / 28)
But there really isn't a way to create an Indicator Formula for a trailing stop.
Average True Range (ATR) & Stop Losses
Trailing-Stop Applications in TC
-Bruce Personal Criteria Formulas TC2000 Support Articles
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Registered User Joined: 9/17/2010 Posts: 484
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What I have done, which I think comes close, is plot C - 2*ATR(14) on the same chart area as price, using Bruce's formula for ATR(14) in his post.
I beleive that I can then visually determine a Stop Loss Value by looking at the Max of my plot over the past three weeks. If Price (using yesterday's Close) is less than the Max of my C - 2*ATR(14) plot, then I have a Stop Loss indicator.
Bruce, is my process correct?
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Worden Trainer
Joined: 10/7/2004 Posts: 65,138
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That is a decent way to do this. It allows you to visually look at the chart and determine the max since you entered the stock.
The big problem with a stop loss implementation is determining the period over which to calculate it since it depends on how long you have been in the stock.
-Bruce Personal Criteria Formulas TC2000 Support Articles
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Registered User Joined: 10/15/2010 Posts: 18
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Hello Bruce - I also plotted now the 2*ATR on the chart. works fine.
Is it possible to add a value , that the down moves don´t get ploted.
If we have no higher high the value should be ploted as a horizontal line.
Thanks for your answer
Achim
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Worden Trainer
Joined: 10/7/2004 Posts: 65,138
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There is no good way to create an automated trailing stop type indicator in TC2000.
-Bruce Personal Criteria Formulas TC2000 Support Articles
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