OPEN-SOURCE SCRIPT
Updated Volatility Adjusted Profit Target
In my 'Volatility Adjusted Profit Target' indicator, I've crafted a dynamic tool for calculating target profit percentages suitable for both long and short trading strategies. It evaluates the highest and lowest prices over the anticipated duration of your trade, establishing a profit target that shifts with market volatility. As volatility increases, the potential for profit follows, with the target percentage rising accordingly; conversely, it declines with decreasing volatility. As a trader, setting an optimal Take Profit level has always been a challenge. This indicator not only helps in determining that level but also dynamically adjusts it throughout the trade's duration, providing a strategic edge in volatile markets.
Release Notes
Code refactorRelease Notes
Modified the target profit percentage calculation to reflect the delta between the highest and lowest prices SMA in relation to the SMA of the lowest price, enhancing the indicator's sensitivity to range volatility. This adjustment offers a higher profit target, better capturing potential gains when the target is achieved, thereby aligning more closely with market volatility trends.Release Notes
Updated Profit Target Calculation: The denominator in the profit target percentage calculation now varies based on the direction of the trade. For long trades, the target percentage is calculated using the lowest price (as the base), reflecting potential upward price movement from this point. For short trades, the highest price is used, aligning with expectations of price decline from the peak. This adjustment ensures the profit target more accurately mirrors the volatility range and potential profit avenues specific to each trade direction, aiming for higher precision in setting achievable and strategic profit goals.Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
For quick access on a chart, add this script to your favorites — learn more here.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
For quick access on a chart, add this script to your favorites — learn more here.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.