The script plot upside and down side stop loss using pivot point and trure range.
The True Range, representing market volatility, is determined by finding the maximum value among the differences between the previous high-low, high-close, and low-close. The Downside Stop Loss is calculated by adding the True Range to the Pivot Point, while the Upside Stop Loss is calculated by subtracting the True Range from the Pivot Point.
These levels are plotted on the chart in blue (Pivot Point), red (Downside Stop Loss), and green (Upside Stop Loss), providing traders with essential reference points for their trading strategies.
The provided Pine Script calculates key trading levels for the current candle, including the Pivot Point, Downside Stop Loss, and Upside Stop Loss. The Pivot Point is computed as the average of the previous candle's high, low, and close prices.
The Downside Stop Loss and Upside Stop Loss values of this indicator are same as you calculated for Call Value and Put Value in the Options Buying and SMA 3 Pivot crossover indicator. Why are Stop Loss values same as Call and Put Values?
Sabarijegan
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@DRDREW2020, ...First i created this indicator for stoploss and maintain the position....After using applying this indicator in chart, i opserved one thing mostly the market is falling in between the stoploss...so i tried to use this stoploss value as put value and call value for option trading....
Why are Stop Loss values same as Call and Put Values?