Trailing Stop Long/Short Anchored

Description:

The anchored trailing stop is an enhancement of the traditional trailing stop that offers traders a range of manual and automatic anchoring options for increased precision in risk management. This functionality allows traders to anchor the trailing stop to specific candles or automatically to various technical levels or timeframes.

Input Parameters:

Loss%: The percentage below the current market price for a long position or above the market price for a short position, which automatically adjusts as the market price fluctuates.
Anchor To: Select the criteria of anchoring the indicator. For example, you can anchor the indicator to time by selecting Year to Date. You can also anchor the indicator to Recent Gap or Highest volume or to Start of the month among many other options available.
Window: The amount of candles a candle must dominate over in order to count as an appropriate anchor point". So in case, you do Window=5, then you'll be essentially anchoring to Williams Fractal points. If you do Window=20, then candle A will be recognized as the anchor point only in case no candle from 10 candles to the left and 10 candles to the right from A dominates over A.*
Band Type: You can plot bands (a bundle of multiple levels) around this indicator and define the levels accordingly. There are three types of bands available to use i.e. - Percentage, Std. deviation (also known as volatility bands), and VbP Ribbon (gets thicker around the areas where more volume has been traded).

Use Case:

Enhanced Precision: The ability to anchor the trailing stop to specific candles or technical levels allows traders to align their stop-loss levels with key price points or market events. This customization provides a higher level of precision in risk management and can potentially improve trade timing.
Adaptability: Traders can dynamically adjust the anchor point as market conditions evolve. This adaptability allows them to respond to changing trends, support/resistance levels, or technical patterns, ensuring their trailing stop remains relevant and effective.
Customization Options: The anchored trailing stop offers a range of options for anchoring, including manual selection of candles, automatic anchoring to technical levels, or timeframes. This variety allows traders to choose the method that best suits their trading style and preferences.
Risk Control: By using trailing stops, traders can protect profits and limit potential losses. The anchored trailing stop provides an additional layer of control by incorporating specific reference points, enabling traders to manage risk more effectively.

This feature can be used in: