What it does
Volatility Stop plots a single trailing stop line that flips between below price in uptrends and above price in downtrends. It is computed by offsetting price by a multiple of Average True Range (commonly 2 to 3 times ATR): in an uptrend the stop trails at the highest reference price minus the ATR multiple and only ratchets upward, and when price closes through it the line flips to the other side. The distance therefore breathes with market volatility.
How to add it
Click Indicators (ƒx) in the header.
Search “Volatility Stop” and click the result.
Hover its legend row and click the gear to open settings.
How traders use it
- Use the line as a trailing stop: stay long while price holds above it, exit or reverse when a close crosses it, and mirror the logic for shorts.
- The side the line sits on is a simple trend filter: only take long setups while the stop is below price.
- Choose the multiplier by holding period: around 2x ATR for shorter swings, 3x or more to give position trades room through normal pullbacks.
- Combine with an entry method (breakouts, pullbacks, MA crosses); Volatility Stop is best as the exit and trend-filter half of a system, not the entry.
Inputs
| Input | Type | Default | Range / Options |
|---|---|---|---|
| Length | number | 20 | 2–200 |
| Source | select | close | Close / Open / High / Low / HL2 / HLC3 / OHLC4 |
| Multiplier | number | 2 | 0.25–10 |
| Timeframe | select | Chart | Chart / 1 minute / 5 minutes / 15 minutes / 30 minutes / 1 hour / 1 day / 1 week / 1 month |
| Wait for timeframe closes | boolean | On | — |
Plots & styling
| Plot | Style | Default color |
|---|---|---|
| Stop | circles | #ff5722 |
Every plot's color, line width and visibility can be changed on the Style tab. Precision, price-scale labels and status-line values are configurable at the bottom of the Style tab.
Tips
- Double-click any of its lines to jump straight into the settings dialog.
- Save the configured chart as a study template (Indicators menu) to reapply this exact setup elsewhere.
- Right-click the indicator's line for quick actions — settings, visibility and removal without hunting through menus.
- A custom timeframe input lets it compute on a higher interval than the chart.
Watch out for
- In choppy ranges price crosses the stop repeatedly, flipping the trend state and generating whipsaw exits.
- Because the stop trails by a volatility multiple, sharp reversals surrender a significant portion of open profit before triggering.