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Volatility stop

A trailing stop at ATR distance that flips side when price breaks it.

The line follows price at a distance measured in ATR. Direction is +1 when the stop is below price, −1 when it is above.

In TradeXtool

Exit: Price close crosses below Volatility stop(20, 2).

Watch out

A stop is not a signal. Used as an entry it buys after the move has already happened.

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