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Volatility

Volatility Stop

VSTOP

Computes an ATR-based trailing stop that ratchets in the direction of the trend: the long stop only moves up (rolling maximum of close minus ATR multiple) and the short stop only moves down (rolling minimum of close plus ATR multiple).

Tips

The long stop acts as a floor that rises with price—never manually lower it once set, as this defeats the purpose of a trailing stop
Increase the multiplier in high-volatility conditions (e.g. earnings, macro events) to avoid being stopped out by normal noise

Parameters

Period
2 - 100
Multiplier
0.5 - 5