Parabolic Stop — Indicator by LeMogwai

Parbolic Stop is a mix between the indicator Parabolic SAR, Volatility Stop and an SMA.

The goal of this indicator is to place your stop loss in an optimized spot. You can also combine the indicator switch from different timeframes to get buy or sell signal.

Open-source script

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.

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.

Want to use this script on a chart?

study(title="Parabolic Stop", shorttitle="StopAR", overlay=true)
start = input(0.02)
increment = input(0.05)
maximum = input(0.2)
sar = sar(start, increment, maximum)
length = input(20)
smaclose= sma(close, 3*length)
smahigh = sma(high, 3*length)
smalow = sma(low, 3*length)
mult = input(4)
atr_ = atr(length)
max1 = max(nz(max_[1]), close)
min1 = min(nz(min_[1]), close)
is_uptrend_prev = nz(is_uptrend[1], true)
stop = is_uptrend_prev ? max1 - mult * atr_ : min1 + mult * atr_
vstop_prev = nz(vstop[1])
vstop_prev2 = nz(vstop[2])
vstop1 = is_uptrend_prev ? min(max(vstop_prev, stop), sar): max(min(vstop_prev, stop), sar)
is_uptrend = close - vstop1 >= 0
is_trend_changed = is_uptrend != is_uptrend_prev
max_ = is_trend_changed ? close : max1
min_ = is_trend_changed ? close : min1
vstop = is_trend_changed ? is_uptrend ? max(max_ - mult * atr_, sar) : min(min_ + mult * atr_, sar) : vstop1
p1 = plot(vstop, color = is_uptrend ? aqua : fuchsia, style = line, linewidth=2)
sma = is_uptrend?smaclose : smaclose
p2 = plot(sma, color = white, linewidth=2)