'last red low / last green high' exit

27 may 2022

This is a good alternative to pivot points and ma lines to find long and short exit points (stop loss prices) for a trade.
When you hear traders say "set the stop loss to the recent swing", this indicator seems to do a reasonable job of finding those.

This script marks

• the low of the most recent red candle
  
• the high of the most recent green candle
  

in order to help identify a reasonable stop loss exit point for long and short trades.

You can also specify a distance threshold to the stop loss point.

How to use it.

• Decide how far from the current price the exit should be (default 1.5%)
  
• Use your chosen trading strategy to identify a long or short entry position
  
• Add a long/short drawing to the close of the trade candle
  
• Set the stop loos of your drawing to the exit line of this indicator
  
• Set the take profit of your drawing using the desired risk to reward ratio
  

Note: A good rule is that if this indicator does not show a valid exit line, do not enter the trade.
Note: If the change of a new "last Green High" or the "last Red Low" is below 0.5%, the indicator will keep the previous values

27 may 2022

Notas de prensa

Fixed an issue where the distance to exit % was not using the input.
Changed the default to 0.5

27 may 2022

Notas de prensa

Changed line type
removed stuff from the cart.

27 may 2022

Notas de prensa

Fix error converting the change required to switch to a new recent low/high
Also added input for that threshold

27 may 2022

Notas de prensa

Removed a debug plot because I'm an idiot

27 may 2022

Notas de prensa

Added the ability to show or hide long or short lines.

27 may 2022

Notas de prensa

Removed an unreasonable offset

27 may 2022

Notas de prensa

added a change filter for the plot to make the chart clearer