Basically, it checks to see if the lowest low of the last 7 days is above a certain level. If yes, it sets the stop at that level. It then checks for the next highest level and keeps going until the price is not above a level. Those variables are then set to the level below them.
Trailing stops are notorious for skewing backtest results. This script avoids that problem. Also, some exchanges do not offer trailing stops, so this script gives you a signal to let you know its time to manually move your stops up.
I will be using this for swing trades involving both crypto and stocks.
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.