eSignal Study: A trailing stop provides a systematic way to know when to exit a trade. It is especially useful for trend traders and breakout traders who like to let profits run while maintaining a logical exit for when the market trend changes so they can exit their position in a controlled and timely manner. Using efficient stops is applicable to all markets from equities and options to forex and futures and e-mini and in any timeframe.

This study is intended to assist traders looking for a systematic way to follow their trades with a trailing stop or to be alerted to changes in market trends. As its name suggests this indicator uses "Average True Range" to trail a stop behind prices. We use average true range in our trailing stop indicator instead of a fixed percentage because this allows the trailing stop to adjust to the volatility of the market in which it is being used.

Using the correct settings, this script can also be used to determine bias.  Bullish, trading above the line, bearish below.  

For additional guidance on using the ATR Trailing Stop, please visit this article. 

The period and multiplier are customizable to suit the vehicle you are trading.  Plus, the colors and line thickness are also customizable!

BONUS! Also available is the ATR Trailing Stop "Band".  This works the same way as the ATR Trailing Stop, but shows the ATR TS level above AND below the price.  This can be useful for setting targets as well as your stop.

IMPORTANT: This script requires the neoLibrary.efsLib.  You can download it here (free).