DATR - ProSl- Professional SL with DATR - STOCK FUSION

DATR - ProSL - Professional Stop Loss with DATR - STOCK FUSION

## Overview

The "DATR - ProSL - Professional Stop Loss with DATR" indicator, developed by STOCK FUSION, is an original tool designed to assist traders in setting effective stop-loss levels for intraday, swing, and positional trading. This indicator calculates the Daily Average True Range (DATR) and provides customizable stop-loss levels based on user-defined percentages. It includes a research mode for in-depth analysis and a visual table to display key metrics, making it a versatile tool for risk management. This indicator is not a copy of any existing work and has been coded from scratch by STOCK FUSION to ensure compliance with TradingView's House Rules.

## Description

The DATR - ProSL indicator calculates the Daily Average True Range (DATR) over a user-specified period (default: 22 days) to measure market volatility. It uses this DATR value to compute stop-loss levels at 2% (for intraday trading) and 15% (for swing/positional trading) of the DATR, which are plotted on the chart for visual reference. Additionally, it allows users to input a custom Distant Line Value (DLV) for manual stop-loss settings.

### Key Features:

- **DATR Calculation**: Computes the Daily Average True Range using a user-defined lookback period.
- **Locked DATR**: Locks the DATR value when the price moves higher than the previous reference price, ensuring consistency in stop-loss calculations.
- **Percentage-Based Stop-Loss Levels**: Plots stop-loss levels at 2% to 5% (intraday) and 10% to 20 % (swing/positional) of the DATR, customizable via user inputs.
- **Research Mode**: When enabled, collects historical DATR values and displays metrics like the average DATR, stop-loss based on average DATR (SL-1), and stop-loss based on 15% DATR (SL-2) in a table.
- **Customizable Table**: Displays key metrics (CMP, DATR, 2% DATR, 10% to 20 % DATR, etc.) in a user-friendly table with customizable background and text colors.
- **Visual Aids**: Plots DATR and percentage-based levels on the chart for easy reference.

### How It Works:

1. **DATR Calculation**: The indicator calculates the True Range (highest of high-low, high-previous close, or low-previous close) and averages it over the specified period to derive the DATR.
2. **Stop-Loss Levels**: Two stop-loss levels are calculated:
- **2% DATR**: For intraday trading, typically set to 2% to 5% of the DATR (adjustable).
- **15% DATR**: For swing/positional trading, typically set to 10% to 20 % of the DATR (adjustable).
3. **Research Mode**: When activated, it stores historical DATR values and computes the average DATR, SL-1 (difference between DLV and average DATR), and SL-2 (difference between DLV and 15% DATR).
4. **Table Display**: A table in the top-right corner displays the current market price (CMP), DATR, percentage-based levels, and research mode metrics (if enabled).

### Important Notes:

- **No Buy/Sell Signals**: This indicator does not generate buy or sell signals or provide trading recommendations. It is designed solely to assist traders in setting stop-loss levels based on volatility and user inputs.
- **Original Work**: The indicator is an original creation by STOCK FUSION, developed independently and not based on or copied from any other indicator or source.
- **Compliance with TradingView House Rules**: The code adheres to TradingView's guidelines, ensuring proper functionality, transparency, and no misleading claims.

## How Traders Can Use It

The DATR - ProSL indicator is a powerful tool for traders looking to implement disciplined risk management strategies. Here's how it can be used:

1. **Setting Stop-Loss Levels**:

- **Intraday Traders**: Use the 2% DATR level (green line) to set tight stop-losses for short-term trades, helping to manage risk in volatile markets.
- **Swing/Positional Traders**: Use the 15% DATR level (red line) for longer-term trades, accommodating larger price movements while maintaining risk control.
- **Custom Stop-Loss**: Input a custom Distant Line Value (DLV) to manually set stop-loss levels tailored to specific trading strategies.

2. **Research Mode for Analysis**:

- Activate research mode to analyse historical DATR values and assess volatility trends.
- Use the table to compare the average DATR, SL-1, and SL-2 values to fine-tune stop-loss settings based on historical data.

3. **Visual Risk Management**:

- The plotted DATR and percentage levels provide a visual guide to gauge volatility and set stop-losses relative to current market conditions.
- The table consolidates all key metrics, making it easy to monitor DATR-based stop-loss levels and current price action.

## Why It’s Useful for Traders

- **Enhanced Risk Management**: By using DATR-based stop-loss levels, traders can set stops that align with market volatility, reducing the risk of premature stop-outs or excessive losses.
- **Customizability**: Adjustable inputs (DATR length, percentage levels, DLV) allow traders to tailor the indicator to their trading style and risk tolerance.
- **Research Capabilities**: The research mode provides valuable insights into historical volatility, helping traders make data-driven decisions.
- **User-Friendly Interface**: The table and plotted lines offer a clear, at-a-glance view of critical metrics, improving decision-making efficiency.
- **Versatility**: Suitable for various trading styles (intraday, swing, positional) and asset classes (stocks, forex, commodities, etc.).

## Disclaimer

This indicator is provided for educational and informational purposes only. It does not offer financial advice, trading signals, or recommendations. Traders should conduct their own analysis and consult with a financial advisor before making trading decisions. STOCK FUSION and the indicator’s developers are not responsible for any financial losses incurred while using this tool.

By using the DATR - ProSL indicator, traders can enhance their risk management practices with a robust, volatility-based approach, ensuring better control over their trading strategies.