[leading-wick] ATR-Based Stop Loss CalculatorDeveloped by cooper_dg
Leading Wick's ATR-Based Stop Loss Calculator is a precision risk management tool designed to eliminate emotional stop placement and replace it with volatility-adjusted, structure-based execution.
This tool calculates stop loss levels using previous structure (high/low) combined with ATR expansion, ensuring that stops are placed beyond normal volatility noise.
It is designed for discretionary traders who care about consistency in risk execution.
🔧 How It Works
The stop is calculated using:
Structure Level ± (ATR × Multiplier)
Where:
Structure Level = Previous High or Previous Low
ATR = Average True Range (volatility)
Multiplier = Volatility buffer
📌 How To Use
1️⃣ Select Stop Formula
Open indicator settings → “Stop Formula”
For Long Trades:
Select Previous Low - ATR
For Short Trades:
Select Previous High + ATR
2️⃣ Define Structure Level
In the settings, locate:
"Pick Previous High/Low Level"
You have 3 options:
Manually type the price of the previous high/low
Drag the horizontal reference line on the chart
Adjust the value via the price selector
⚠️ Important:
By default, the value is set to 0.0.
If you don’t see a stop line initially, simply enter the structure price manually.
3️⃣ Adjust ATR Multiplier
Default = 2.0
The ATR Multiplier determines how far beyond structure your stop is placed.
Example:
If ATR = 15
Multiplier = 2
Buffer = 30 points
Stop = Structure ± 30
Higher multiplier:
Wider stop
Lower probability of being wicked out
Lower position size required
Lower multiplier:
Tighter stop
Higher R:R potential
Higher probability of stop-outs in volatile conditions
4️⃣ Lock Entry ATR (Optional)
Use the “Lock Entry Now” toggle on your entry candle.
When enabled:
ATR value at that moment is frozen
Stop calculation remains consistent
Prevents volatility expansion from altering your original stop logic
This is useful for traders who want fixed-risk consistency.
🎯 Best Used For
Indices
Commodities
FX majors
Volatility-sensitive assets
Works especially well when combined with:
Structural trend frameworks
Liquidity-based entries
Pullback strategies
⚠️ Important
This tool does not generate entries.
It is a structured stop placement engine.
It is built for traders who already understand:
Market structure
Volatility expansion
Position sizing discipline
Indicador Pine Script®
