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There’s one risk management activity we can fully control in the market which is the setting of stop losses.
If we can practice implementing stop losses on our trades the right way, in a disciplined manner, then we can significantly increase our chances of success in trading.
There are many different ways of setting stop losses, depending on your style of trading and strategy.
You are probably aware that one common method to set stop losses is by using ATR Stop loss values to help you determine your stop loss value, but this method may do some quick calculations in your head or use a calculator if you’re not too comfortable with maths.
So, if you want to quickly determine your stop loss for your trades without having to calculate or figure out where it should be then the ATR Stop loss finder indicator may make setting your stop loss levels much easier.
The ATR Stop loss finder is a nice visual indicator that displays recommended stop loss levels at every point in time, of an asset on the charts of Trading View.
It uses the ATR values to calculate a safe stop loss point which is good as it factors in the current market volatility of an asset.
In Trading view, you can find the ATR Stop loss finder from the indicators section, search for ATR Stop loss finder, by veryfid. It’s a free indicator.
Here’s how to use it, once the ATR stop loss finder is loaded on the chart, you’ll see the addition of 2 lines above and below the price.
So whatever price you enter your trade, if it’s a buy trade, you look at the line below the candlestick that you will place a trade, then on the ATR stop loss line above, you can hover with your mouse or tap ( on a mobile device) and you will see the price value on the right or left depending on how you configured your Trading View charts.
For a sell trade, you do the opposite, that is to look at the line above the candlestick that you will place a trade, then on the ATR stop loss line above, you can hover with your mouse or tap ( on a mobile device) and you will see the price value on the right or left depending on how you configured your Trading View charts.
The convenience of this indicator is that you don’t have to make any calculations using the ATR value, you just point your cursor or tap above or below the ATR stop loss line and the recommended price will be displayed in an instant.
The default setting values that are set can be used right out of the box, but if you want to set a tighter stop loss, the creator recommends using a value of 1, and for a conservative stop loss, set it at 2.
Here’s the link to the ATR stop loss finder in Trading View.